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Networks and youth labor market entry

  • Hensvik, Lena

    ()

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

  • Nordström Skans, Oskar

    ()

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

The paper provides an overview of existing knowledge regarding the role played by social networks in the process where young workers are matched to employing firms. We discuss standard theories of why social networks may be an important element in the job-matching process and survey the empirical literature on labor market networks with an emphasis on studies pertaining to the role of social contacts during the school-to-work transition phase. In addition, we present some novel evidence on how contacts established while working during the final year in high school affect youth labor market entry. Finally, we discuss how insights from this literature can be used to improve the quality of social programs targeted towards young workers in the Nordic countries.

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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2013:23.

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Length: 36 pages
Date of creation: 14 Oct 2013
Date of revision:
Publication status: Published as Hensvik, Lena and Oskar Nordström Skans, 'Networks and youth labor market entry' in Nordic Economic Policy Review, 2014, pages 81-117.
Handle: RePEc:hhs:ifauwp:2013_023
Contact details of provider: Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
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  1. Uta Schoenberg & Albrecht Glitz & Christian Dustmann, 2011. "Referral-based Job Search Networks," 2011 Meeting Papers 350, Society for Economic Dynamics.
  2. Joseph G. Altonji & Charles R. Pierret, 1997. "Employer Learning and Statistical Discrimination," NBER Working Papers 6279, National Bureau of Economic Research, Inc.
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  4. Michele Pellizzari, 2004. "Do friends and relatives really help in getting a good job?," LSE Research Online Documents on Economics 19980, London School of Economics and Political Science, LSE Library.
  5. Giorgio Topa & Stephen Ross & Patrick Bayer, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Working Papers 05-23, Center for Economic Studies, U.S. Census Bureau.
  6. Simon, Curtis J & Warner, John T, 1992. "Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 306-30, July.
  7. Samuel Bentolila & Claudio Michelacci & Javier Suarez, 2004. "Social Contacts And Occupational Choice," Working Papers wp2004_06, CEMFI.
  8. Matt Jackson, 2003. "The Effects of Social Networks on Employment and Inequality," Theory workshop papers 658612000000000032, UCLA Department of Economics.
  9. 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.
  10. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
  11. Lori Beaman & Jeremy Magruder, 2012. "Who Gets the Job Referral? Evidence from a Social Networks Experiment," American Economic Review, American Economic Association, vol. 102(7), pages 3574-93, December.
  12. Alessandra Casella & Nobuyuki Hanaki, 2006. "Why Personal Ties Cannot Be Bought," American Economic Review, American Economic Association, vol. 96(2), pages 261-264, May.
  13. Johansson, Per, 2008. "The importance of employer contacts: Evidence based on selection on observables and internal replication," Labour Economics, Elsevier, vol. 15(3), pages 350-369, June.
  14. Lars Behrenz, 2001. "Who Gets The Job And Why? An Explorative Study Of Employers’ Recruitment Behavior," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 255-278, November.
  15. Paul Oyer & Scott Schaefer, 2010. "Personnel Economics: Hiring and Incentives," NBER Working Papers 15977, National Bureau of Economic Research, Inc.
  16. Meta Brown & Elizabeth Setren & Giorgio Topa, 2012. "Do informal referrals lead to better matches? Evidence from a firm's employee referral system," Staff Reports 568, Federal Reserve Bank of New York.
  17. Eriksson, Stefan & Rooth, Dan-Olof, 2011. "Do Employers Use Unemployment as a Sorting Criterion When Hiring? Evidence from a Field Experiment," IZA Discussion Papers 6235, Institute for the Study of Labor (IZA).
  18. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-18, December.
  19. Olof Åslund & Per Johansson, 2011. "Virtues of SIN: Can Intensified Public Efforts Help Disadvantaged Immigrants?," Evaluation Review, , vol. 35(4), pages 399-427, August.
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