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The Importance of Networks in the Market for University Graduates in Japan: A Longitudinal Analysis of Hiring Patterns


  • Rebick, Marcus E


This study examines the extent to which the transition from university education to work is characterized by persistent hiring flows between university faculties and firms, rather than being characterized by an open market process. Using a specially devised metric, I find that more than one-half of all hires may be attributed to persistence in hiring by firms from specific faculties with the remainder due to random hiring. There does not seem to be a major difference in the importance of screening between science and engineering and non-science faculties. In general, the importance of persistence increases as the difference in the quality of the faculty from which existing personnel in firms graduated, and the standard of faculties from which firms are hiring increases. This suggests that persistence exists to aid firms in screening students when they come from relatively low-standard faculties.

Suggested Citation

  • Rebick, Marcus E, 1998. "The Importance of Networks in the Market for University Graduates in Japan: A Longitudinal Analysis of Hiring Patterns," CEPR Discussion Papers 1816, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1816

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    References listed on IDEAS

    1. Sandmo, Agnar, 1979. "A note on the neutrality of the cash flow corporation tax," Economics Letters, Elsevier, vol. 4(2), pages 173-176.
    2. Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, vol. 81(4), pages 757-774, September.
    3. Siebert, Horst, 1997. "Disziplinierung der nationalen Wirtschaftspolitik: durch die internationale Kapitalmobilität," Kiel Working Papers 832, Kiel Institute for the World Economy (IfW).
    4. Agell, Jonas & Englund, Peter & Sodersten, Jan, 1996. "Tax Reform of the Century -- the Swedish Experiment," National Tax Journal, National Tax Association, vol. 49(4), pages 643-664, December.
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    Cited by:

    1. John Knight & Linda Yueh, 2008. "The role of social capital in the labour market in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(3), pages 389-414, July.
    2. Claire Bonnard, 2012. "The Access of the Young Graduates in Sciences into R&D Profession: A Switching Model Treatment for the French Case," LABOUR, CEIS, vol. 26(1), pages 46-65, March.
    3. Daiji Kawaguchi & Hiroshi Ono, "undated". "Educational Credentialism and Elite Formation in Japan: A Long-term Perspective," Working Papers e54, Tokyo Center for Economic Research.
    4. Manuel F. Bagues & Mauro Sylos Labini, 2009. "Do Online Labor Market Intermediaries Matter? The Impact of AlmaLaurea on the University-to-Work Transition," NBER Chapters,in: Studies of Labor Market Intermediation, pages 127-154 National Bureau of Economic Research, Inc.
    5. David Margolis & Véronique Simonnet, 2002. "Educational Track, Networks and Labor Market Outcomes," Working Papers 2002-60, Center for Research in Economics and Statistics.
    6. Fathi Fakhfakh & Annick Vignes & Jihan Ghrairi, 2015. "Youth ! ... How did you find your job ?," Working Papers hal-01253907, HAL.
    7. Yamamura, Eiji, 2008. "The role of social capital in homogeneous society: Review of recent researches in Japan," MPRA Paper 11385, University Library of Munich, Germany.
    8. Dargnies, Marie-Pierre, 2011. "Social identity and competitiveness," Discussion Papers, Research Unit: Market Behavior SP II 2011-202, Social Science Research Center Berlin (WZB).
    9. Kawaguchi, Daiji & Ma, Wenjie, 2008. "The causal effect of graduating from a top university on promotion: Evidence from the University of Tokyo's 1969 admission freeze," Economics of Education Review, Elsevier, vol. 27(2), pages 184-196, April.

    More about this item


    Education; graduates; Japan; job matching; Labour Market; Network;

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations


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