Une théorie des relations sociales emploi et inégalité[A theory of social relations jobs and inequality]

In this paper, we consider a simple model that integrates the component of the social network as a research method of workers as well as a method of recruitment policy by firms. Indeed, taking into account the social sphere is fundamental to understand the labor market dynamic in developing countries. In particular, our dynamic model shows that when the cost of formal recruitment policy are very high then only individuals who have more effective social network find a job which creates social inequality and its reproduction. Indeed, in the context of social relations, firms use the density of the social network as a more efficient informal employment allocation mechanism. In terms of public policy, it would be socially desirable to subsidize the costs of formal recruitment policy to reduce the persistence of social inequality. Our theory applies to the problem of gender gap as well as employment of migrants