IDEAS home Printed from https://ideas.repec.org/p/sap/wpaper/wp179.html
   My bibliography  Save this paper

Who do you know or what do you know? Informal recruitment channels, family background and university enrolments

Author

Listed:
  • Emanuela Ghignoni

Abstract

This paper deals with the role that an extensive use of informal networks to match workers to jobs can play in the university enrolments decisions of low socioeconomic status students in Italy.By applying estimation techniques with instrumental variables to ISTAT microdata, I found that upper-secondary students coming from lower social classes are less likely to participate in higher education when they live in provinces where the percentage of newly tertiary graduates who found a job thanks to the help of relatives, family connections or friends is higher. My results are consistent with the hypothesis that the wide diffusion of ‘favouritism’ in local labour markets engenders a sense of ‘economic despair’ among those who are poorly connected, thereby damaging individual human capital accumulation, inequality of access to higher education and local socio-economic development.

Suggested Citation

  • Emanuela Ghignoni, 2017. "Who do you know or what do you know? Informal recruitment channels, family background and university enrolments," Working Papers 179, University of Rome La Sapienza, Department of Public Economics.
  • Handle: RePEc:sap:wpaper:wp179
    as

    Download full text from publisher

    File URL: https://web.uniroma1.it/dip_ecodir/sites/default/files/wpapers/wp179.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Sascha O. Becker, 2006. "Introducing Time-to-Educate in a Job-Search Model," Bulletin of Economic Research, Wiley Blackwell, vol. 58(1), pages 61-72, January.
    2. Dickinson, David L. & Masclet, David & Peterle, Emmanuel, 2018. "Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market," European Economic Review, Elsevier, vol. 104(C), pages 220-236.
    3. Vincenzo Scoppa, 2009. "Intergenerational transfers of public sector jobs: a shred of evidence on nepotism," Public Choice, Springer, vol. 141(1), pages 167-188, October.
    4. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2009. "Social Connections and Incentives in the Workplace: Evidence From Personnel Data," Econometrica, Econometric Society, vol. 77(4), pages 1047-1094, July.
    5. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-1418, December.
    6. Kunze, Lars & Suppa, Nicolai, 2017. "Bowling alone or bowling at all? The effect of unemployment on social participation," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 213-235.
    7. Holzer, Harry J, 1988. "Search Method Use by Unemployed Youth," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 1-20, January.
    8. Kugler, Adriana D., 2003. "Employee referrals and efficiency wages," Labour Economics, Elsevier, vol. 10(5), pages 531-556, October.
    9. Roodman, David, 2011. "Fitting fully observed recursive mixed-process models with cmp," Stata Journal, StataCorp LP, vol. 11(2), pages 1-48.
    10. John T. Addison & Pedro Portugal, 2002. "Job search methods and outcomes," Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 505-533, July.
    11. Bruckmeier, Kerstin & Wigger, Berthold U., 2014. "The effects of tuition fees on transition from high school to university in Germany," Economics of Education Review, Elsevier, vol. 41(C), pages 14-23.
    12. Alberto Alesina & Yann Algan & Pierre Cahuc & Paola Giuliano, 2015. "Family Values And The Regulation Of Labor," Journal of the European Economic Association, European Economic Association, vol. 13(4), pages 599-630, August.
    13. Ponzo, Michela & Scoppa, Vincenzo, 2010. "The use of informal networks in Italy: Efficiency or favoritism?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 89-99, January.
    14. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, June.
    15. Debora Di Gioacchino & Laura Sabani & Simone Tedeschi, 2016. "Differences in education systems across OECD countries: the role ofeducation policy preferences in a hierarchical system," Working Papers 177, University of Rome La Sapienza, Department of Public Economics.
    16. Michele Pellizzari, 2010. "Do Friends and Relatives Really Help in Getting a Good Job?," ILR Review, Cornell University, ILR School, vol. 63(3), pages 494-510, April.
    17. Mortensen, D. T. & Vishwanath, T., 1995. "Personal contacts and earnings: It is who you know!," Labour Economics, Elsevier, vol. 2(1), pages 103-104, March.
    18. Valentina Meliciani & Debora Radicchia, 2016. "Informal networks, spatial mobility and overeducation in the Italian labour market," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 513-535, March.
    19. Eduardo Lora & Johanna Fajardo, 2013. "Latin American Middle Classes: The Distance Between Perception and Reality," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2013), pages 33-60, August.
    20. Matthew S. Goldberg, 1982. "Discrimination, Nepotism, and Long-Run Wage Differentials," The Quarterly Journal of Economics, Oxford University Press, vol. 97(2), pages 307-319.
    21. Melissa S. Kearney & Phillip B. Levine, 2016. "Income Inequality, Social Mobility, and the Decision to Drop Out of High School," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 47(1 (Spring), pages 333-396.
    22. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
    23. Marianne Bertrand & Antoinette Schoar, 2006. "The Role of Family in Family Firms," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 73-96, Spring.
    24. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    25. Laband, David N & Lentz, Bernard F, 1992. "Self-Recruitment in the Legal Profession," Journal of Labor Economics, University of Chicago Press, vol. 10(2), pages 182-201, April.
    26. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    27. Mukherjee , Conan & Pal , Rama, 2016. "Role of Parental Expectations in Determining Child Labour and Schooling," Working Papers 2016:6, Lund University, Department of Economics.
    28. Emanuela Ghignoni, 2015. "Family background and university dropouts during the crisis: the case of Italy," Working Papers 169, University of Rome La Sapienza, Department of Public Economics.
    29. Saloner, Garth, 1985. "Old Boy Networks as Screening Mechanisms," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 255-267, July.
    30. Osberg, Lars, 1993. "Fishing in Different Pools: Job Search Strategies and Job-Finding Success in Canada in the Early 1980s," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 348-386, April.
    31. Eduardo Lora & Johanna Fajardo, 2013. "Latin American Middle Classes: The Distance Between Perception and Reality," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2013), pages 33-60, August.
    32. Eric Delattre & Mareva Sabatier, 2007. "Social Capital and Wages: An Econometric Evaluation of Social Networking's Effects," LABOUR, CEIS, vol. 21(2), pages 209-236, June.
    33. Pigini, Claudia & Staffolani, Stefano, 2013. "Enrollment costs, university quality and higher education choices in Italy," MPRA Paper 50364, University Library of Munich, Germany.
    34. Jonathan M. Thomas, 1997. "Public Employment Agencies and Unemployment Spells: Reconciling the Experimental and Nonexperimental Evidence," ILR Review, Cornell University, ILR School, vol. 50(4), pages 667-683, July.
    35. Melissa S. Kearney & Phillip B. Levine, 2014. "Income Inequality and Early Nonmarital Childbearing," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 1-31.
    36. Gabriella Berloffa & Francesca Modena & Paola Villa, 2014. "Changing Labour Market Opportunities for Young People in Italy and the Role of the Family of Origin," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 227-252.
    37. Giorgio Di Pietro, 2006. "Regional labour market conditions and university dropout rates: Evidence from Italy," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 617-630.
    38. Bernard F. Lentz & David N. Laband, 1989. "Why So Many Children of Doctors Become Doctors: Nepotism vs. Human Capital Transfers," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 396-413.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    informal channels; favouritism; enrolments; tertiary education; local labour markets;

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sap:wpaper:wp179. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luisa Giuriato). General contact details of provider: http://edirc.repec.org/data/dprosit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.