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Your very private job agency : job referrals based on residential location networks

Author

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  • Hawranek, Franziska
  • Schanne, Norbert

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"This paper analyzes job referral effects that are based on residential location. We use georeferenced record data for the entire working population (liable to social security) and the corresponding establishments in the Rhine-Ruhr metropolitan area, which is Germany's largest (and EU's second largest) metropolitan area. We estimate the propensity of two persons to work at the same place when residing in the same neighborhood (reported with an accuracy of 500m×500m grid cells), and compare the effect to people living in adjacent neighborhoods. We find a significant increase in the probability of working together when living in the same neighborhood, which is stable across various specifications. We differentiate these referral effects for socioeconomic groups and find especially strong effects for migrant groups from former guestworker countries and new EU countries. Further, we are able to investigate a number of issues in order to deepen the insight on actual job referrals: distinguishing between the effects on working in the same neighborhood and working in the same establishment - probably the more accurate measure for job referrals - shows that the latter yield overall smaller effects. Further, we find that clusters in employment although having a significant positive effect play only a minor role for the magnitude of the referral effect. When we exclude short distance commuters, we find the same probabilities of working together, which reinforces our interpretation of this probability as a network effect." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Hawranek, Franziska & Schanne, Norbert, 2014. "Your very private job agency : job referrals based on residential location networks," IAB Discussion Paper 201401, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201401
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    References listed on IDEAS

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    Cited by:

    1. Jahn, Elke J. & Neugart, Michael, 2017. "Do Neighbors Help Finding a Job? Social Networks and Labor Market Outcomes After Plant Closures," IZA Discussion Papers 10480, Institute for the Study of Labor (IZA).
    2. Saygin, Perihan Ozge & Weber, Andrea & Weynandt, Michèle, 2014. "Coworkers, Networks, and Job Search Outcomes," IZA Discussion Papers 8174, Institute for the Study of Labor (IZA).
    3. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, Elsevier.
    4. Jahn, Elke Jutta & Neugart, Michael, 2016. "Do neighbors help finding a job? Social networks and labor market," Annual Conference 2016 (Augsburg): Demographic Change 145476, Verein für Socialpolitik / German Economic Association.
    5. Elisabeth Bügelmayer & Daniel D. Schnitzlein, 2014. "Is It the Family or the Neighborhood?: Evidence from Sibling and Neighbor Correlations in Youth Education and Health," SOEPpapers on Multidisciplinary Panel Data Research 716, DIW Berlin, The German Socio-Economic Panel (SOEP).

    More about this item

    Keywords

    Arbeitsvermittlung; informelle Kommunikation; soziales Netzwerk - Auswirkungen; soziale Umwelt; Beschäftigungseffekte; Arbeitsort; Wohnort; Inländer; Einwanderer; ausländische Arbeitnehmer; Arbeitsplatzwahl; peer group; Integrierte Erwerbsbiografien; Rhein-Region; Ruhrgebiet; Nordrhein-Westfalen; Bundesrepublik Deutschland;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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