Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/65959
Authors: 
Galeotti, Andrea
Merlino, Luca Paolo
Year of Publication: 
2010
Series/Report no.: 
ISER Working Paper Series 2010-14
Abstract: 
We develop a model where workers, anticipating the possibility of unemployment, invest in connections to access information about available jobs. The investment in connections is high when the job separation rate is moderate, otherwise the investment in connections is low. The response of network investment to labor market conditions generates novel predictions. In particular, the probability that a worker finds a new job via his connections increases in the separation rate, when the separation rate is low, and it decreases otherwise. These predictions are supported by the empirical patterns which we document for the UK labor market.
Subjects: 
Unemployment
Job search
Endogenous Job Contact Networks
JEL: 
A14
J64
J63
D85
E24
Document Type: 
Working Paper

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