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People I Know: Job Search and Social Networks

  • Federico Cingano
  • Alfonso Rosolia

We assess the strength of information spillovers relating unemployment duration of workers displaced by firm closures to their former colleagues’ current employment status. Displaced-specific networks are recovered from a 20-year panel of matched employer-employee data. Spillovers are identified by comparing performances of codisplaced workers. A one-standard-deviation increase in the network employment rate reduces unemployment duration by about 8%; the effect is magnified if contacts recently searched for a job and if their current employer is spatially and technologically closer to the displaced worker; stronger ties and lower competition for information favor reemployment. Several indirect tests exclude other interaction mechanisms.

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File URL: http://www.jstor.org/stable/full/10.1086/663357
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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 30 (2012)
Issue (Month): 2 ()
Pages: 291 - 332

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Handle: RePEc:ucp:jlabec:doi:10.1086/663357
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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