With a little help from my friends? Quality of social networks,job finding and job match quality |
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| Institution: | 1. Università Cattolica, Largo Gemelli 1, 20123 Milan, Italy;2. University of Nottingham, School of Economics, University Park, Nottingham NG7 2RD, UK;3. Institute for the Study of Labor (IZA), Bonn, Germany;1. Joint Research Centre (JRC), European Commission, via Fermi, 21027 Ispra (VA), Italy;2. Department of Economics and Management, University of Padua, Via del Santo 33, 35123 Padua, Italy;3. IZA, Germany;1. The Institute of Empirical Social Sciences Research, Xi’an Jiaotong University, No. 28, Xianning West Road, Xi’an, Shaanxi 710049, China;2. School of Social Sciences and Communications, La Trobe University, Melbourne, Victoria 3086, Australia;3. Department of Sociology, University of Minnesota, 267 19th Avenue South, Minneapolis, MN 55455, United States |
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| Abstract: | This paper studies the effect of network quality on job finding and job match quality using longitudinal data and a direct measure of network quality, which is based on the employment of friendship ties. Various identification strategies provide robust evidence that a higher number of employed contacts increases the job finding rate. Network quality also increases wages for high-skilled workers forming networks with non-familial contacts. Instead, for low-skilled workers, more employed familial contacts lead to a negative but not significant effect on wages. These findings reconcile previous mixed evidence of network effects on wages, indicating heterogeneity by skill level and relationship type. |
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| Keywords: | Social contacts Unemployment Friendship ties Wages Employment stability |
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