Job Search Among Informal Contacts
Understanding the role of informal contacts in job search can be important given that roughly half of workers find employment through such sources. Some previous research finds that informal contacts improve labor market outcomes. Other work shows that individuals who found their jobs through friends and relatives had lower wages and less job satisfaction than those who used other methods. In light of the varying effects, the purpose of this paper is to uncover why individuals differ in the types of contacts used to find the jobs that they hold.
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