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Job Tenure and Personal Contacts: Good Matches or Limited Choices?

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  • Linda Datcher Loury

Abstract

This paper contends that there is an alternative explanation of the positive relationship between using informal contacts and job tenure for some young men. Lower wages, wage growth, and expected job tenure may characterize those using contacts with little clout in the market. In such cases, the correlation between informal contacts and job tenure should not be interpreted as evidence of better match quality. Workers with poor quality personal contacts may rely on informal information sources only as a last resort when they are unable to find lucrative jobs through other means. Such workers would remain at their current jobs mainly because they have limited alternative choices rather than because of better match quality.

Suggested Citation

  • Linda Datcher Loury, 2004. "Job Tenure and Personal Contacts: Good Matches or Limited Choices?," Discussion Papers Series, Department of Economics, Tufts University 0417, Department of Economics, Tufts University.
  • Handle: RePEc:tuf:tuftec:0417
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    References listed on IDEAS

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    Cited by:

    1. Jellal, Mohamed, 2014. "Une théorie des relations sociales emploi et inégalité [A theory of social relations jobs and inequality]," MPRA Paper 57512, University Library of Munich, Germany.
    2. Linda Datcher Loury, 2004. "Some Job Contacts are More Equal Than Others: Earnings and Job Information Networks," Discussion Papers Series, Department of Economics, Tufts University 0404, Department of Economics, Tufts University.

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