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The Role of Social Capital on the Searching Behaviours of a Job Seeker in the Multiple Labour Markets

Author

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  • Hiep Truong Thanh
  • Hong Nguyen Thi Bich

Abstract

This study aims to build a two-stage theoretical model to analyse the role of social capital on the searching behaviours of a job seeker in two different markets. As the advantage of the social capital in either market triggers the reservation wages in both two markets equally, the job seeker should prioritize his or her resources enhancing a larger amount of the social capital in a particular market. Consequently, the job seeker tends to search more intensively in the market where she or he has a higher level of social capital. That is the seeker can shorten the expected searching time. The proposed model also explains why the job seeker sometimes chooses the 2nd highest wage offer instead of the highest one. JEL Classifications: C02, D83, J64

Suggested Citation

  • Hiep Truong Thanh & Hong Nguyen Thi Bich, 2023. "The Role of Social Capital on the Searching Behaviours of a Job Seeker in the Multiple Labour Markets," Studies in Microeconomics, , vol. 11(3), pages 374-381, December.
    • Handle: RePEc:sae:miceco:v:11:y:2023:i:3:p:374-381
    DOI: 10.1177/23210222211051469
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    More about this item

    Keywords

    Labor market; job search; social capital; behaviour;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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