Informal Networks in the Italian Labor Market
In this paper I focus on the effect of informal networks on individuals’ job search and earnings. In the empirical analysis, conducted on data drawn from the 1991 and 1993 Bank of Italy Survey of Household Income and Wealth, I show that while seeking work through informal networks (referrals by friends, relatives, or acquaintances to potential employers) increases the probability of receiving job offers, it is also associated with lower earnings. In a regression of annual earnings on human capital variables and a dummy for whether the worker was hired via informal networks, the latter displays a negative and statistically significant coefficient. I consider two alternative explanations: unobserved low skills/ability and firms’ attributes. I find that while controlling for the latter halves the magnitude of the effect, it does not remove it entirely.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 58 (1999)
Issue (Month): 3-4 (December)
|Contact details of provider:|| Postal: via Sarfatti, 25 - 20136 Milano (Italy)|
Web page: http://www.gde.unibocconi.it/
|Order Information:|| Web: http://www.gde.unibocconi.it Email: |
When requesting a correction, please mention this item's handle: RePEc:gde:journl:gde_v58_n3-4_355-375. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Erika Somma)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.