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Job search via social networks : An analysis of monetary and non-monetary returns for low-skilled unemployed

Author

Listed:
  • Krug, Gerhard

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Rebien, Martina

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"Using a search theoretical model, we analyse the effects of the information flow via social networks (friends, relatives and other personal contacts) by comparing monetary and non-monetary outcomes in obtaining jobs via networks versus formal methods. Propensity-score matching on survey data from the low-skilled unemployed is used to identify causal effects. The analysis takes into account unobserved heterogeneity by applying Rosenbaum bounds. Because of the potential ambiguity when comparing outcomes in accepted jobs, we also examine the effectiveness of job searches using social networks as a source of information compared to not using networks. We find no evidence for causal effects on monetary outcomes and, at best, only weak evidence for effects on non-monetary job outcomes." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Krug, Gerhard & Rebien, Martina, 2011. "Job search via social networks : An analysis of monetary and non-monetary returns for low-skilled unemployed," IAB-Discussion Paper 201123, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201123
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    File URL: https://doku.iab.de/discussionpapers/2011/dp2311.pdf
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    References listed on IDEAS

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    6. Koning, Pierre & Berg, Gerard J. van den & Ridder, Geert, 1997. "A structural analysis of job search methods and subsequent wages," Serie Research Memoranda 0036, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    7. Rebien, Martina, 2010. "The use of social networks in recruiting processes from a firms perspective," IAB-Discussion Paper 201005, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    10. Ho, Daniel E. & Imai, Kosuke & King, Gary & Stuart, Elizabeth A., 2007. "Matching as Nonparametric Preprocessing for Reducing Model Dependence in Parametric Causal Inference," Political Analysis, Cambridge University Press, vol. 15(3), pages 199-236, July.
    11. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 01 Feb 2018.
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    Cited by:

    1. Marco Caliendo & Jens Hogenacker & Steffen Künn & Frank Wießner, 2012. "Alte Idee, neues Programm: Der Gründungszuschuss als Nachfolger von Überbrückungsgeld und Ich-AG [Old idea, new program: The new start-up subsidy as a successor of the former bridging allowance and," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(2), pages 99-123, July.
    2. Deeke, Axel & Baas, Meike, 2012. "Berufliche Statusmobilität von Arbeitslosen nach beruflicher Weiterbildung : ein empirischer Beitrag zur Evaluation der Förderung beruflicher Weiterbildung," IAB-Discussion Paper 201211, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Ralf Werner Koßmann, 2016. "Effectiveness of Social Capital in the Job Search Process," SOEPpapers on Multidisciplinary Panel Data Research 823, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. David Carroll & Massimiliano Tani, 2015. "Job search as a determinant of graduate over-education: evidence from Australia," Education Economics, Taylor & Francis Journals, vol. 23(5), pages 631-644, October.

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Langzeitarbeitslose ; Niedrigqualifizierte ; soziales Netzwerk ; Arbeitslose ; Arbeitsplatzsuchtheorie ; Arbeitsuche;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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