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Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages

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  • Linda Datcher Loury

    (Tufts University)

Abstract

The explanation typically given for longer tenure among workers who use informal contacts to find jobs is that relatives and friends reduce uncertainty about the quality of the match between worker and employer. An alternative explanation is that workers rely on informal information sources as a last resort. Such workers remain at their current jobs mainly because they have few alternative choices rather than because of better match quality. This article shows that the two different explanations are simultaneously valid for different types of contacts and can account for differences in the wage effects of job contacts.

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  • Linda Datcher Loury, 2006. "Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 299-318, April.
  • Handle: RePEc:ucp:jlabec:v:24:y:2006:i:2:p:299-318
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