@techreport{Fontaine2004Workers,
abstract = {This paper provides a simple matching model in which unemployed workers and employers
in large firms can be matched together through social networks or through more "formal"
methods of search. We show that networks do not necessarily add new externalities and that
some results previously obtained in the literature are questionable. Nevertheless, social
networks can, in some case, substitute for labor market and this crowding-out effect may be
socially costly. We show that a policy increasing the number of workers embedded in the
social networks can increase the unemployment rate and decrease workers welfare. Since it
is mostly the firms which benefit from larger social networks, transfers from the firms to the
workers are necessary to make larger access to the social networks efficient.},
author = {Fran\c{c}ois Fontaine},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {Z13; J68; E24; J64; 330; economic policy; matching; social networks; unemployment; Arbeitslosigkeit; Arbeitsnachfrage; Matching; Soziales Netzwerk; Crowding out; Arbeitsmarkttheorie; Theorie},
language = {eng},
number = {1282},
title = {Do Workers Really Benefit From Their Social Networks?},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/20548},
year = {2004}
}
