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Network social capital and labour market outcomes Evidence from Ireland

  • Brady, Gerard
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    Using data from the International Social Survey Programme 2008 this paper tests empirically the effects of network social capital on Irish employment outcomes, while controlling for possible endogeneity. We allow the effects of social networks to vary for different groups and across different localities. We also test the hypothesis that network social capital works as a complement to human capital in the labour market, rather than as a substitute. We find that social participation and employment are not endogenous and that ‘weak ties’ matter for employment outcomes, whereas ‘strong ties’ are less important. The effects, however, vary across age and location. We also find that social and human capital may be substitutes rather than complements when it comes to the labour market. These findings are discussed with relevance and examples for policy.

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    File URL: http://mpra.ub.uni-muenchen.de/47391/1/MPRA_paper_47391.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47391.

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    Date of creation: 30 May 2013
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    Handle: RePEc:pra:mprapa:47391
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    1. Michael Bernabé Aguilera, 2002. "The Impact of Social Capital on Labor Force Participation: Evidence from the 2000 Social Capital Benchmark Survey," Social Science Quarterly, Southwestern Social Science Association, vol. 83(3), pages 853-874.
    2. Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behavior," Working Paper Series 601, Research Institute of Industrial Economics.
    3. Jackman, Richard & Layard, Richard, 1991. "Does Long-term Unemployment Reduce a Person's Chance of a Job? A Time-Series Test," Economica, London School of Economics and Political Science, vol. 58(229), pages 93-106, February.
    4. Kelly, Elish & O'Connell, Philip J. & Smyth, Emer, 2010. "The economic returns to field of study and competencies among higher education graduates in Ireland," Economics of Education Review, Elsevier, vol. 29(4), pages 650-657, August.
    5. Kevin Denny, 2003. "The Effects of Human Capital on Social Capital - A Cross-Country Analysis," Working Papers 200318, School Of Economics, University College Dublin.
    6. 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.
    7. Quentin Max David & Alexandre Janiak & Etienne Wasmer, 2010. "Local social capital and geographical mobility," ULB Institutional Repository 2013/133081, ULB -- Universite Libre de Bruxelles.
    8. Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J., 2011. "Transitions to Long-Term Unemployment Risk Among Young People: Evidence from Ireland," Papers WP394, Economic and Social Research Institute (ESRI).
    9. John Considine & Frank Crowley & Sinead Foley & Marie O'Connor, 2008. "Irish National Lottery Sports Capital Grant Allocations, 1999-2007: Natural Experiments On Political Influence," Economic Affairs, Wiley Blackwell, vol. 28(3), pages 38-44, 09.
    10. Laura Greene Knapp & Terry Seaks, 1998. "A Hausman test for a dummy variable in probit," Applied Economics Letters, Taylor & Francis Journals, vol. 5(5), pages 321-323.
    11. Rowell, David & Connelly, Luke, 2010. "Labour market outcomes for people with a spinal cord injury," Economics & Human Biology, Elsevier, vol. 8(2), pages 223-232, July.
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