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Erscheinungsjahr: 
2017
Schriftenreihe/Nr.: 
IZA Discussion Papers No. 10480
Verlag: 
Institute of Labor Economics (IZA), Bonn
Zusammenfassung: 
Social networks may affect workers' labor market outcomes. Using rich spatial data from administrative records, we analyze whether the employment status of neighbors influences the employment probability of a worker who lost his job due to a plant closure and the channels through which this occurs. Our findings suggest that a ten percentage point higher neighborhood employment rate increases the probability of having a job six months after displacement by 0.9 percentage points. The neighborhood effect seems to be driven not by social norms but by information transmission at the neighborhood level, and additionally by networks of former co-workers who also lost their jobs due to plant closure.
Schlagwörter: 
social networks
job search
neighborhood
employment
wages
plant closures
JEL: 
J63
J64
R23
Dokumentart: 
Working Paper

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