Social networks and labor market transitions

Yann Bramoullé, Gilles Saint-Paul

Research output: Contribution to journalArticle

Abstract

We study the influence of social networks on labor market transitions. We develop the first model where social ties and job status coevolve through time. Our key assumption is that the probability of formation of a new tie is greater between two employed individuals than between an employed and an unemployed individual. We show that this assumption generally generates negative duration dependence of exit rates from unemployment. Our model has a number of novel testable implications. For instance, we show that a higher connectivity among unemployed individuals reduces duration dependence and that exit rates depend positively on the duration of the last job held by the unemployed worker.

Original languageEnglish (US)
Pages (from-to)188-195
Number of pages8
JournalLabour Economics
Volume17
Issue number1
DOIs
StatePublished - Jan 1 2010

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Keywords

  • Duration dependence
  • Homophily
  • Labor market transitions
  • Social networks

ASJC Scopus subject areas

  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management

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