Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142381
Authors: 
Goel, Deepti
Lang, Kevin
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9942
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

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