Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/142381 
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers No. 9942
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
In this paper we highlight a specific mechanism through which social networks help in job search. We characterize the strength of a network by its likelihood of providing a job offer. Using a theoretical model we show that the wage differential in jobs found using networks versus those found using formal channels, decreases as the network becomes stronger. We verify this result for recent immigrants to Canada for whom a strong network is captured by the presence of a 'close tie.' Furthermore, structural estimates confirm that the presence of a close tie operates by increasing the likelihood of generating a job offer from the network rather than by altering the wage distribution from which an offer is drawn.
Subjects: 
job search
migration
networks
JEL: 
J3
Document Type: 
Working Paper

Files in This Item:
File
Size
170.5 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.