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Title:Social Networks and Labor Market Transitions PDF Logo
Authors:Bramoullé, Yann
Saint-Paul, Gilles
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1215
Abstract:We study the influence of social networks on labor market transitions. We develop the first model where social ties and job status coevolve through time. Our key assumption is that the probability of formation of a new tie is greater between two employed individuals than between an employed and an unemployed individual. We show that this assumption generates negative duration dependence of exit rates from unemployment. Our model has a number of novel testable implications. For instance, we show that a higher connectivity among unemployed individuals reduces duration dependence and that exit rates depend positively on the duration of the last job held by the unemployed worker.
Subjects:social networks
unemployment duration
labor market transitions
social capital
economic inbreeding
JEL:J6
E24
Z13
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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