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Do neighbors help finding a job? Social networks and labor market outcomes after plant closures

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  • Jahn, Elke
  • Neugart, Michael

Abstract

Social networks may affect workers' labor market outcomes. Using rich spatial data from administrative records, we analyze whether the employment status of neighbors influences the employment probability of a worker who lost his job due to a plant closure and the channels through which this occurs. Our findings suggest that a ten percentage point higher neighborhood employment rate increases the probability of having a job six months after displacement by 0.9 percentage points. The neighborhood effect seems to be driven not by social norms but by information transmission at the neighborhood level, and additionally by networks of former co-workers who also lost their jobs due to plant closure.
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Suggested Citation

  • Jahn, Elke & Neugart, Michael, 2020. "Do neighbors help finding a job? Social networks and labor market outcomes after plant closures," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 120679, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:120679
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/120679/
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    Cited by:

    1. Ostermann, Kerstin & Eppelsheimer, Johann & Gläser, Nina & Haller, Peter & Oertel, Martina, 2022. "Geodata in labor market research: trends, potentials and perspectives," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 56, pages 1-5.
    2. Philippe Askenazy & Verónica Escudero, 2022. "The Geographical Dimension of Inequalities in Access to Employment," Post-Print halshs-04828621, HAL.
    3. Philippe Askenazy & Verónica Escudero, 2022. "Dimension géographique des inégalités d’accès à l’emploi," Post-Print halshs-03801734, HAL.
    4. Adan Silverio‐Murillo & Lauren Hoehn‐Velasco & Jose Roberto Balmori de la Miyar, 2023. "Disputes between neighbors in Mexican cities during the COVID‐19 pandemic," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(3), pages 626-643, April.

    More about this item

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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