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Wage Dynamics and Peer Referrals

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  • Vincent Boucher
  • Marion Goussé

Abstract

We present a flexible model of wage dynamics where information about job openings is transmitted through social networks. The model is based on Calvó-Armengol & Jackson (2004, 2007) and extends their results outside the stationary distribution, and under observed and unobserved heterogeneity. We present an empirical application using the British Household Panel Survey by exploiting direct information about individual’s social networks. We find that the distribution of job offers is positively affected by the employment status of an individual’s friends, and that this relationship is stronger for women.

Suggested Citation

  • Vincent Boucher & Marion Goussé, 2015. "Wage Dynamics and Peer Referrals," Cahiers de recherche 1514, CIRPEE.
    • Handle: RePEc:lvl:lacicr:1514
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    2. Boucher, Vincent & Dedewanou, F. Antoine & Dufays, Arnaud, 2022. "Peer-induced beliefs regarding college participation," Economics of Education Review, Elsevier, vol. 90(C).
    3. Sébastien Willis, 2022. "Workplace Segregation and the Labour Market Performance of Immigrants," CESifo Working Paper Series 9895, CESifo.

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    More about this item

    Keywords

    Labour Market; Peer Referrals; Social Networks;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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