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A Dynamic Model of Weak and Strong Ties in the Labor Market

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  • Yves Zenou

Abstract

The study develops a simple model where workers can obtain a job through either their strong or weak ties. It shows that increasing the time spent with weak ties raises the employment rate of workers. It also shows that when the job-destruction rate or the job-information rate increases, workers choose to rely more on their weak ties to find a job. The model is extended so unemployed workers can also learn of a vacancy directly from an employer. Results show that equilibrium employment and time spent with weak ties are sometimes, but not in all cases, positively related.

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  • Yves Zenou, 2015. "A Dynamic Model of Weak and Strong Ties in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 33(4), pages 891-932.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/681098
    DOI: 10.1086/681098
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    Cited by:

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    3. Picard, Pierre M. & Zenou, Yves, 2018. "Urban spatial structure, employment and social ties," Journal of Urban Economics, Elsevier, vol. 104(C), pages 77-93.
    4. Islam, Asad & Nguyen, Chau, 2018. "Do networks matter after a natural disaster? A study of resource sharing within an informal network after Cyclone Aila," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 249-268.
    5. Xiaoyu Wu & Jianmei Zhao, 2020. "Risk sharing, siblings, and household equity investment: evidence from urban China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(2), pages 461-482, April.
    6. Patacchini, Eleonora & Rainone, Edoardo & Zenou, Yves, 2017. "Heterogeneous peer effects in education," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 190-227.
    7. Gyetvai, Attila & Zhu, Maria, 2021. "Coworker Networks and the Role of Occupations in Job Finding," IZA Discussion Papers 14615, Institute of Labor Economics (IZA).
    8. Vincent Boucher & Marion Gousse, 2019. "Wage Dynamics and Peer Referrals," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 1-23, January.
    9. Tyndall, Justin, 2021. "The local labour market effects of light rail transit," Journal of Urban Economics, Elsevier, vol. 124(C).
    10. Sato, Yasuhiro & Zenou, Yves, 2015. "How urbanization affect employment and social interactions," European Economic Review, Elsevier, vol. 75(C), pages 131-155.
    11. Bervoets, Sebastian & Zenou, Yves, 2017. "Intergenerational correlation and social interactions in education," European Economic Review, Elsevier, vol. 92(C), pages 13-30.
    12. Kunze, Lars & Suppa, Nicolai, 2017. "Bowling alone or bowling at all? The effect of unemployment on social participation," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 213-235.
    13. Mariko Nakagawa & Yasuhiro Sato & Kazuhiro Yamamoto, 2019. "Segregation and Public Spending under Social Identification," CIRJE F-Series CIRJE-F-1132, CIRJE, Faculty of Economics, University of Tokyo.
    14. Yoske Igarashi, 2016. "Distributional effects of hiring through networks," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 20, pages 90-110, April.
    15. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    16. Argentiero, Amedeo & Cerqueti, Roy & Sabatini, Fabio, 2021. "Does social capital explain the Solow residual? A DSGE approach," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 35-53.
    17. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2017. "The Economic Consequences of Social-Network Structure," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 49-95, March.
    18. Cristian Darío Castillo Robayo & Javier García Estévez, 2019. "Desempleo juvenil en Colombia: ¿la educación importa?," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 11(1), pages 101-101, February.
    19. Zhang Rui, 2017. "Getting a Job through Unemployed Friends: A Social Network Perspective," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 17(2), pages 1-20, June.
    20. Fathi Fakhfakh & Annick Vignes & Jihan Ghrairi, 2015. "Youth ! ... How did you find your job ?," Working Papers hal-01253907, HAL.
    21. Picard, Pierre M. & Zenou, Yves, 2015. "Urban Spatial Structure, Employment and Social Ties: European versus American Cities," IZA Discussion Papers 9166, Institute of Labor Economics (IZA).
    22. Zhiling Wang & Thomas de Graaff & Peter Nijkamp, 2018. "Barriers of Culture, Networks, and Language in International Migration: A Review," REGION, European Regional Science Association, vol. 5, pages 73-89.
    23. Liwen Chen & Bobby Chung & Guanghua Wang, 2022. "Stay-at-Home Peer Mothers and Gender Norms: Short-run Effects on Educational Outcomes," Working Papers 2022-039, Human Capital and Economic Opportunity Working Group.
    24. Zhiling Wang, 2020. "The incompatibility of local economic prosperity and migrants’ social integration: evidence from the Netherlands," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 57-78, February.

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