Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/166029
Authors: 
Hensvik, Lena
Müller, Dagmar
Nordström Skans, Oskar
Year of Publication: 
2017
Series/Report no.: 
Working Paper, IFAU - Institute for Evaluation of Labour Market and Education Policy 2017:2
Abstract: 
Using Swedish economy-wide data spanning across two deep recessions, we examine the relationship between labor market conditions and the role of social contacts in matching labor market entrants to employing firms. We use class-plant fixed-effects models to isolate the role of social contacts from paid work during high-school. One third of post-graduation matches are formed at establishments where youths worked during their studies. Furthermore, graduates are much more likely to match with sites to which adult coworkers from these jobs have relocated. These patterns are strikingly counter-cyclical. Contacts are much more important for job matching in deep recessions than in good times, suggesting that informal contacts and social networks are crucial determinants of matching patterns in bad times.
Subjects: 
job matching
social contacts
business cycle
young workers
JEL: 
J01
Document Type: 
Working Paper

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