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Density,social networks and job search methods: Theory and application to Egypt
Affiliation:1. University of Southampton, UK;2. IUI, University of Southampton, Sweden;3. GAINS, France;1. Shandong University, China;2. National University of Singapore, Department of Economics, 1 Arts Link, Singapore, 117570, Singapore;1. Indian Statistical Institute, Delhi, India;2. IZA, Bonn, Germany;3. King''s College London, UK;4. CAGE, UK;5. CEPR;6. University of Arkansas, Fayetteville, USA;1. College of Administrative Sciences and Informatics, Palestine Polytechnic University, Hebron, Palestine;2. Department of Economics and Political Science, St. Catherine University, 2004 Randolph Avenue, St. Paul, MN 55105, USA;3. Department of Economics, University of Southampton, Southampton, SO171BJ, UK;1. Bielefeld University, Faculty of Sociology, P.O. Box 100131, 33501 Bielefeld, Germany;2. University of Cologne, Institute for Comparative Educational and Social Sciences, Gronewaldstraße 2, 50931 Köln, Germany;3. Autonomous University of Barcelona, Department of Social and Cultural Anthropology, Building B, Faculty of Arts, Office B9-229, 08193, Bellaterra (Cerdanyola del Vallès), Barcelona, Spain
Abstract:We first develop a theoretical model in which individuals are embedded within a network of social relationships. We show that, conditional on being employed, the probability to find a job through social networks, relative to other search methods, increases and is concave with the size of the network. The effects are stronger for the uneducated. There is however a critical size of the network above which this probability decreases. We then test empirically these theoretical findings for Egypt using the 1998 Labor Market Survey. The empirical evidence supports the predictions of our theoretical model.
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