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dc.contributor.authorCaliendo, Marcoen_US
dc.contributor.authorSchmidl, Ricardaen_US
dc.contributor.authorUhlendorff, Arneen_US
dc.description.abstractIn this paper we analyze the relationship between social networks and the job search behavior of unemployed individuals. It is believed that networks convey useful information in the job search process such that individuals with larger networks should experience a higher productivity of informal search. Hence, job search theory suggests that individuals with larger networks use informal search channels more often and substitute from formal to informal search. Due to the increase in search productivity, it is also likely that individuals set higher reservation wages. We analyze these relations using a novel data set of unemployed individuals in Germany containing extensive information on job search behavior and direct measures for the social network of individuals. Our findings confirm theoretical expectations. Individuals with larger networks use informal search channels more often and shift from formal to informal search. We find that informal search is mainly considered a substitute for passive, less cost intensive search channels. In addition to that, we find evidence for a positive relationship between the network size and reservation wages.en_US
dc.publisherDeutsches Institut für Wirtschaftsforschung (DIW) Berlinen_US
dc.relation.ispartofseriesDiscussion papers // German Institute for Economic Research 1055en_US
dc.subject.keywordJob search behavioren_US
dc.subject.keywordsocial networksen_US
dc.subject.stwSoziales Netzwerken_US
dc.titleSocial networks, job search methods and reservation wages: Evidence for Germanyen_US
dc.typeWorking Paperen_US
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