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Information Networks in Labor Markets

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... Our hypotheses regarding these customer metrics of managerial interest are informed by prior work in economics and sociology on employee referral (e.g., Coverdill 1998;Rees 1966), especially the work of Fernandez, Castilla, and Moore (2000), Neckerman and Fernandez (2003), and Castilla (2005) on the quality of employee referral programs. These studies show that the benefits of such programs are realized through distinct mechanisms, of which better matching and social enrichment appear particularly relevant to marketers. ...
... Whereas reciprocity and triadic balance imply that referrers are diligent and active in screening and matching peers to firms, homophily implies that customers are likely to refer others who are similar to themselves. Because existing customers have an above-average chance of being a good match (otherwise, they would not be customers), firms may benefit from referral programs through "passive" homophily-based matching rather than only deliberate "active" screening-based matching by referrers (Kornish and Li 2010;Montgomery 1991;Rees 1966). ...
... Therefore, we expect replications and extensions to come from other single-firm studies such as ours and those of Godes andMayzlin (2009), Haenlein (2010), Iyengar, Van den Bulte, and Valente (2011), and Nitzan and Libai (2010). Because the mechanisms of better matching and social enrichment are likely to be more important for complex products with important experience attributes, rather than simple products with 58 / Journal of Marketing, January 2011 mostly search attributes (e.g., Coverdill 1998;Kornish and Li 2010;Rees 1966), studies of multiple products with varying levels of complexity would be especially informative. ...
Article
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Referral programs have become a popular way to acquire customers. Yet there is no evidence to date that customers acquired through such programs are more valuable than other customers. The authors address this gap and investigate the extent to which referred customers are more profitable and more loyal. Tracking approximately 10,000 customers of a leading German bank for almost three years, the authors find that referred customers (1) have a higher contribution margin, though this difference erodes over time; (2) have a higher retention rate, and this difference persists over time; and (3) are more valuable in both the short and the long run. The average value of a referred customer is at least 16% higher than that of a nonreferred customer with similar demographics and time of acquisition. However, the size of the value differential varies across customer segments; therefore, firms should use a selective approach for their referral programs.
... The early literature on employment focuses on social networks, specifically, the differences between formal and informal network contacts (Rees 1966;Bridges and Villemez 1986) and network structure, like network ties (Wahba and Zenou 2005;Flap and De Graaf 1985;Granovetter 1973). Using data from a study of the Chicago labor market, Rees (1966) asks whether people use formal or informal information networks more frequently to acquire jobs, finding that informal mechanisms are used most often by people with "blue-collar occupations" and at least 50 percent of the time by people with "white-collar occupations" (559). ...
... The early literature on employment focuses on social networks, specifically, the differences between formal and informal network contacts (Rees 1966;Bridges and Villemez 1986) and network structure, like network ties (Wahba and Zenou 2005;Flap and De Graaf 1985;Granovetter 1973). Using data from a study of the Chicago labor market, Rees (1966) asks whether people use formal or informal information networks more frequently to acquire jobs, finding that informal mechanisms are used most often by people with "blue-collar occupations" and at least 50 percent of the time by people with "white-collar occupations" (559). Rees (1966) notes that the importance of informal networks is the rich information that these contacts provide, information not necessarily available from formal contacts like job services. ...
... Using data from a study of the Chicago labor market, Rees (1966) asks whether people use formal or informal information networks more frequently to acquire jobs, finding that informal mechanisms are used most often by people with "blue-collar occupations" and at least 50 percent of the time by people with "white-collar occupations" (559). Rees (1966) notes that the importance of informal networks is the rich information that these contacts provide, information not necessarily available from formal contacts like job services. ...
Thesis
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Native Americans living in Indian Country continue to experience poverty due, in part, to a lack of sufficient employment opportunities. Indian reservations, often situated in rural areas, can be difficult to access and complicated land and political issues can make it difficult to attract outside investors. However, as is the case for most people, Native Americans living on or near their respective reservation communities do not necessarily want to leave home to find work. This study examined the social networks of a sample of Native Americans from two tribes in Montana. A social network analysis was conducted to understand how job networks in Indian Country affected job acquisition in terms of location. Individual networks were analyzed to determine if they were primarily bridging or bonding and then compared to a respondent’s job location preference, on, adjacent to, or off reservation. In addition, individual job acquisition methods were analyzed and compared to job location preference. Results show that there was no relationship between network type and job location preference and that the methods used to acquire jobs were the opposite from what was expected. That is, the respondents whose networks, overall, were more bridging acquired their jobs using bonding methods more frequently and the respondents whose networks, overall, were more bonding acquired ii their jobs using bridging methods more frequently. If resources are scarce, using strong network ties to access jobs may be necessary; however, if resources are abundant, using weak network ties within the bonded networks that exist in Indian Country is useful. Recommendations for future research include studying how dense networks function to benefit tribal development, the way that network ties are defined in Indian Country, and who are the people that act as network bridges relative to their specific tribes. This study contributes to the network strand of the social capital literature, to the literature on indigenous people and jobs, and to the development literature, especially as it relates to socioeconomics.
... De plus, la personne qui connaît des employés de l'entreprise à laquelle elle postule pourra négocier au mieux son salaire (Seidel & Polzer & Stewart ;. Ainsi, avoir un réseau permettrait aux candidats d'avoir des informations qui ne sont pas divulguées dans les offres d'emploi, ce qui leur permet de prétendre à plus d'emplois qui correspondent à ses besoins (Rees ;. ...
... Le réseautage est ainsi une méthode efficace et économique en termes de temps et d'argent pour trouver du travail, dans la mesure où les employeurs font confiance aux candidatures qui leur sont transmises par ce biais (Holzer ;. Il est également efficace pour les entreprises elles-mêmes dans la mesure où cela permet de réduire le nombre de candidatures reçues et donc de gagner du temps (Rees ;. La qualité des candidatures est en outre de mise car la crédibilité de la personne qui parraine et transmet les candidatures est mise en jeu (Degenne & Fournier & Marry & Mounier ;1991). ...
... Plus les deux éléments sont importants, plus le volontaire aura des chances de trouver un emploi. Le réseau joue également en principe sur la qualité de l'emploi occupé (Marmaros & Sacerdote ;2002) dans la mesure où le candidat peut obtenir des offres d'emploi qui correspondent à ses attentes et des informations qui ne sont pas divulguées au grand public (Rees ; aujourd'hui… les personnes de mon lycée de cette année, ils sont en M2 au dernier niveau de cette année bah je me rends compte qu'eux bah ils ne savent pas c'est quoi la vraie vie en fait. C'est ça en fait pour eux c'est le monde des « bisounours » et je pense que l'année prochaine quand ils vont se retrouver dans le monde du travail ça va être compliqué. ...
Thesis
Nouvelle forme de volontariat, le Service civique est en pleine expansion chez les jeunes de moins de 26 ans. Avec une approche mixte, ce mémoire propose d’interroger la construction de l’employabilité des volontaires par le biais de ce dispositif et ses effets valorisables sur le marché du travail. Dans un contexte tendu pour les jeunes, le Service civique est un nouvel avatar de l’injonction de professionnalisation à leur destination et constitue un espace récent et intermédiaire de professionnalisation.
... Al respecto de los medios para encontrar empleo y la importancia de las redes de contactos, existe una literatura amplia (Addison & Portugal, 2002;Aguilera, 2002;Bachmann & Baumgarten, 2012;Calvó-Armegol & Jackson, 2004). Una distinción clave al respecto la realizó Rees (1966), al diferenciar los canales de búsqueda de información en formales e informales. La propuesta señala que los medios formales comprenden los servicios estatales de empleo, agencias de colocación, avisos en los periódicos, reuniones sindicales y, departamentos de vinculación escolar; mientras que, los medios informales hacen alusión a referencias de empleados y presentarse directamente en el establecimiento. ...
... Los estudios empíricos apuntan a que cerca del 50 % de los trabajadores encontraron por medio de sus amigos, familiares o conocidos (Loury, 2006;Montgomery, 1991;Rees, 1966). Además, se ha identi cado que quienes obtienen empleo por ese canal regularmente alcanzan mayor antigüedad en las rmas (Loury, 2006). ...
... Una pregunta que puede surgir al evaluar los esquemas más e cientes para encontrar empleo es: ¿El canal de búsqueda cambia por nivel educativo? La tabla 2 con rma lo propuesto por Rees (1966), en el sentido de que alrededor de la mitad de la población encuentra empleo por medio de sus contactos personales y que ello ocurre en todos los niveles educativos. ...
Article
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La investigación tiene como objetivo verificar la existencia de disparidades salariales en México a partir del canal de búsqueda de empleo. En este caso, el análisis se centró en las redes de contactos de los individuos, emplea datos de la Encuesta Nacional de Ocupación y Empleo (enoe) del 2019, estimando una ecuación de determinación salarial semilogarítmica. Los resultados exhiben una prima salarial por haber obtenido empleo mediante Internet (12.4 %), un sindicato (6.7 %), bolsa privada (8.9 %) y contactos personales (6.7 %). Cuando se distingue por edad, se observa que las personas con más de 30 años reportan el mayor impacto positivo de encontrar empleo a través de sus redes de contactos.
... and peers to build and maintain information networks. Rees (1966) first drew attention to differences among workers in their use of the variety of available informational outlets. At least since his influential work, economists acknowledge that in the labor markets demand and supply match in a distinctive mode. ...
... Many studies for different countries have emphasized the popularity of using friends and relatives as a job search channel and indicate that it is an effective stratagem for getting job offers. Empirical studies document that throughout years and across different sectors from 30% to 60% of jobs are filled through family, friends, or other acquaintances (Rees, 1966;Holzer, 1988;Blau and Robins, 1990;Blau, 1992;Loury, 1998;Addison and Portugal, 2002;Wahba and Zenou, 2005;Pellizzari, 2010). Holzer (1988) uses data from the youth cohort of the National Longitudinal Survey on unemployment and job-search method for the USA covering the period 1981 and shows that 25% of previously unemployed African-Americans ages 16-23, compared to 32% for similar whites, obtained jobs through friends and relatives. ...
... Even so, often the strategies adopted by both agents involved in negotiation can be costly and ineffective. In general, recruitment through informal channels is less expensive than formal methods of job search, since workers tend to describe other possible employees as being similar to themselves (Rees, 1966;Montgomery, 1991a;Kugler, 2003;Calvo-Armengol and Jackson, 2004;Ioannides and Loury, 2004). In a labor market characterized by adverse selection, employers will ask for references from the highest skilled workers, and the cost of selection and training will be less than in a situation where the worker's skills will only be revealed after hiring. ...
Article
Purpose This paper investigates the relationship between (1) business cycle and use of personal contacts to obtain job and (2) use of personal contacts to obtain job and wages. Design/methodology/approach For this, we use data from the Monthly Employment Survey (2002–2015) from Brazil which has detailed information on individual and job characteristics. In addition, we investigate the impact of referrals on wage using quantile regressions. Findings Time-varying parameter estimates indicate that the relationship between business cycle and use of personal contacts became less countercyclical over time. In general, they show that there is more evidence of a slow changing relationship between personal contacts and the business cycle over time rather than a sudden and discrete one. Using quantile regressions, we observed that, controlling for similar observable characteristics, and including unobserved heterogeneity, wage differences between workers using personal contacts versus workers using others channels disappear. The evidences indicate that workers resort to personal contacts because of valuation of non-pecuniary job characteristics. Practical implications The results suggest that, in designing subsidy or affirmative action programs, attention to network effects is important. Social networks can help labor markets run more smoothly by alleviating information frictions. Originality/value This study extends the existing literature by providing empirical evidence of the use of personal contacts for the Brazil. Although there are many studies and methods for measuring use of personal contacts, to our knowledge, there are no studies using a time-varying parameters model.
... Access sources to labor information can be classified as formal and informal (Rees, 1966). Specifically, the informal method of job search refers to whether the person resorted to a family member, friend, or acquaintance to find employment. ...
... According to the literature, the decision to resort to one or other method varies according to gender, race, occupation, and country of residence of the person (Rees and Schultz, 1970;Concoran et al., 1980;Pissarides and Wadsworth, 1994;Bentolila et al., 2008;Pellizzari, 2010). Resorting to friends and family as a job search method is the least expensive search method (Holzer, 1988;Mortensen and Vishwanath, 1994); furthermore, employers often use references from their best employees who tend to recommend responsible family and friends who are also similar to them because their reputation would be affected by the quality of the people they recommend (Rees, 1966;Doeringer and Piore, 1971). In addition, Hensvik and Skans (2016) show that firms that use coworker networks recruit workers with better militarily drafts test scores but shorter schooling, they argued that this represent evidence that these networks help the firms to find qualities in workers in hard-to-observe dimensions. ...
Article
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This investigation analyzes labor implications of employment procurement through friends and family on wages, workers' benefits and job longevity in comparison to other job search methods in Mexico during 2005–2019. Various econometric models are performed. For salary, fixed effects by city and year will be estimated through Pooled Ordinary Least Squares (OLS). Second, it is analyzed if jobs obtained through friends and family are more likely to provide benefits equal to or greater than those required by law, for this, a logistic model and an ordered logistic model are employed with fixed effects; and finally, for the duration of employment we use a parametric survival model. The results indicate that employment procured through family and friends result in higher salaries and longer work durations but less work benefits.
... The search for jobs has been broadly dichotomized into formal and informal means. According to Rees (1966), the formal means of job search include search through publicly available channels such as newspaper advertisements, unsolicited direct application to employers and employment agencies. In recent times the internet has become a new addition. ...
... Search methods used to estimate the effect of informal contacts on job tenure was categorised into formal and informal channels. The classification was based on the descriptions of groupings by Rees (1966). Table 4 presents a summary of the descriptive statistics of respondents. ...
Article
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The relevance of social networks sometimes referred to in Ghana as “whom you know” in the job acquisition process and its effect on labour market outcomes (wages, job satisfaction and job tenure) have been highlighted by a number of studies. Most of these studies have concentrated largely on monetary post-hire outcomes with limited research on non-pecuniary aspects. Using a cox proportional hazard model to analyse a survey of 150 formal sector workers in the services sector in Accra, the study observes that first, jobs acquired through the help of workers’ friends and relatives did not last long. The first jobs could be a stepping-stone for better jobs. This effect is however not statistically significant after controlling for individual and firm-level covariates. Conclusions are however made with caution due to the small sample size and the nature of respondents’ majority of whom are highly educated and relatively younger. Future research can explore further social networks and labour markets particularly in Africa where familiarity and identical ethnic bonds are visible and stronger.
... For instance, on average about 50 percent of the workers obtain jobs through their personal contacts, e.g. Rees (1966), Granovetter (1995), Holzer (1987), Montgomery (1991), Topa (2001); Bewley (1999) enumerates several studies published before the 90's, where the fraction of jobs obtained via friends or relatives ranges between 30 and 60 percent. 8 It is also established that on average 40-50 percent of the employers actively use social networks of their current employees to fill their job openings, e.g. ...
... In our "job information network" context, early studies by Rees (1966) and Doeringer and Piore (1971) showed that workers who had been asked for references concerning new hires were in general very likely to refer people "similar" to themselves. While these similar features could be anything, such as ability, education, age, race and so on, the focus here is on groups stratified along exogenous characteristics (i.e. one is born in such a group and cannot alter her group membership) such as those divided along gender, race or ethnicity lines. ...
Preprint
We develop a network model of occupational segregation between social groups divided along gender or racial dimensions, generated by the existence of positive assortative matching among individuals from the same group. If referrals are important for job search, then expected homophily in the structure of job contact networks induces different career choices for individuals from different social groups. This further translates into stable occupational segregation equilibria in the labor market. We derive conditions for wage and unemployment inequality in the segregation equilibria and characterize both the first and the second best social welfare optima. We find that utilitarian socially optimal policies always involve segregation, but that integration policies are justifiable by additional distributional concerns. Our analysis suggests that social interaction through homophilous job referral networks is an important channel for the propagation and persistence of gender and racial inequalities in the labour market, complementary to classical theories such as taste or statistical discrimination.
... Hierzu werden Überlegungen aus der ökonomischen Suchtheorie (vgl. Stigler, 1961;Rees, 1966;Satterthwaite, 1979;Hoerger und Howard, 1995;Harris, 2003) und der soziologischen Theorie sozialen Kapitals herangezogen (vgl. Granovetter, 1973Granovetter, , 1974Granovetter, /1995Granovetter, , 1985Preisendörfer und Voss, 1988;Montgomery, 1992;Lin, 2001;Mouw, 2003;Flap, 2004;Franzen und Hangartner, 2005;Voss, 2007;Röper, Völker und Flap, 2009 Eine weitere Forschungsfrage bezieht sich auf die potenziell erhältlichen sozialen Ressourcen. ...
Article
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Dieser Aufsatz zeichnet ein Bild von den Wegen der Zahnarztsuche in Deutschland und versucht dies mit dem populären Thema der sozialen Netzwerke zu verbinden. In der Soziologie gibt es eine lange Tradition, die sich mit sozialen Netzwerken und sozialem Kapital auf dem Arbeitsmarkt befasst. Der vorliegende Aufsatz möchte diese Forschungsreihe um den Gegenstand des Zahnarzt-Patienten-Verhältnisses erweitern. Dieses Thema ist von allgemeinem Interesse, weil sich soziale Netzwerke und soziales Kapital auf Gesundheit oder Lebenschancen von Menschen auswirken könnten. Die vorliegende Arbeit mit dem Titel Soziale Netzwerke und soziales Kapital bei der Zahnarztsuche basiert auf Überlegungen der soziologischen Theorie sozialen Kapitals sowie der ökonomischen Suchtheorie. Beide Theorien lassen einen positiven Zusammenhang zwischen sozialen Netzwerken und dem Zahnarzt-Patienten-Verhältnis vermuten. Sowohl die Suche über persönliche Kontakte als auch ein "besseres" soziales Netzwerk mit mehr sozialen Ressourcen sollte für Patienten bei der Suche nach einem Zahnarzt von Nutzen sein. Um die vermuteten Zusammenhänge zu testen, wurden zwei Befragungen durchgeführt: eine Befragung in Leipziger Zahnarztpraxen (N = 160) und ein weiteres Survey mit dem Online-Meinungsportal Sozioland (N = 585). Beide Datensätze zeigen, dass Patienten überwiegend soziale Kontakte für die Zahnarztsuche nutzen. Etwa zwei Drittel der Befragten haben ihren aktuellen Zahnarzt über Verwandte, Freunde oder Bekannte gefunden. Die Ergebnisse statistischer Analysen zeigen, dass sich der vermutete Zusammenhang zwischen sozialem Kapital und Patientenzufriedenheit in den meisten Fällen nicht bestätigt. Es gibt jedoch Hinweise dafür, dass Patienten zufriedener mit dem Behandlungsergebnis sind, wenn sie Kontakte bei der Suche genutzt haben. Dieses Ergebnis kann für mehr Vertrauen durch soziale Kontakte sprechen. Soziale Netzwerke und soziales Kapital können wichtig für den Aufbau von Vertrauen zwischen Patienten und ihren Zahnärzten sein.
... Additionally, recommendations from trusted friends are a substitute for a potentially more expensive source of information (e.g., from former teachers and/or employers). Since these information sources are more difficult or more expensive to access, employers would rather use their friends for financial reasons [25]. Another benefit may be associated with a positive work atmosphere, as well as higher productivity and lower training costs. ...
Article
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The phenomena of 'nepotism' and 'favouritism' are frequently observed in contemporary business, being usually associated with corruption in the public sector and the abuse of public resources. The phenomena, however, have an international scale and no country and sector of the economy are free of them. Given these facts, our paper identifies the attitude of Lithuanian and Polish employees to it in the context of revealing the organizational microclimate. Our analysis is done in relation to three basic aspects: a) Sector (public vs. private), b) gender (male vs. female) and c) five different age groups. Our research sample involved 337 respondents (Poland-PL, N = 164 and Lithuania-LT, N = 173) representing public (PL and LT, N = 119) and private (PL and LT, N = 218) sector organizations. A closed-type questionnaire was used in the survey. Validity and reliability of the questionnaire were confirmed by its high psychometric characteristics. Several research methods, including factor analysis, Cronbach's alpha, Spearman-Brown, factor loading and total item correlation were used in our study. The results show that there are both similarities as well as differences between the organizations analysed. As far as the private vs. public sector is concerned, in Poland, manifestation of nepotism in principal does not differ in private and public organizations, unlike in Lithuanian organizations, where a worse situation is recorded in public sector organizations. In turn, comparing employees' attitudes by their gender, it was identified that there were more similarities than differences between Poland and Lithuania in four subcategories. Finally, comparing employees' attitudes by their age, it was identified that the least number of statistically significant differences was identified in two age groups: 18-24 years old and over 51.
... Since the 1960s, studies on paths to employment have stressed the role of personal networks or social ties in finding jobs (Rees 1966), and over the years this has been confirmed by other researchers (Wegener 1991;Holzer 1987;Wahba and Zenou 2005). With the advent of social networks, researchers have also studied the use of these tools for job hunting (Marin 2007;Cappellari and Tatsiramos 2015;Trimble and Kmec 2011;Trimble 2015). ...
Chapter
This chapter provides an overview of the key policies and strategies that are directly linked to regional development and universities. After a summary on how regional policies have changed over time, it outlines educational policies affecting higher education, then offers an overview of global goals, which are, or should be, the overarching framework for policy interventions at all levels. The chapter concludes with some considerations about the implications of graduate employability’s theme in regional economies and local markets.
... Pour (Rees, 1966) 7 , lorsqu'un salarié en poste recommande un chômeur membre de son réseau, il engage sa réputation. Il sélectionne donc uniquement ceux dont la productivité est au moins identique à la sienne. ...
Article
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The feminization of the Tunisian labour market is a recent phenomenon. The favourable economic and legislative environment, the progress of education, the demographic transition and the committed institutional reforms are the principal factors which encouraged the entry of women at the Tunisian labour market. In this regard, can one admit that this favourable evolution implies the reduction of the inequalities suffered by women in the labour market?
... Using data from the Chicago labor market, Rees (1966) was perhaps the first to demonstrate the importance of informal channels when looking for a job. These channels, which include referrals from employers and other employees, along with other sources, accounted for about 50% of white-collar hires and more than 80% of blue-collar hires. ...
Article
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The rapid adoption of mobile phones, particularly in developing countries, has led a number of researchers to investigate their impact on socioeconomic activity in the developing world. However, until the recent advent of smart communication devices, mobile phones were primarily a relations management technology that enabled people to stay connected with each other. In this article, we focus on this basic function and analyze how people use this technology as a tool to expand their social capital. We use a dataset containing more than three billion call detail records from Rwanda’s largest telecommunication operator, covering the whole country during the period from 1 July 2014 to 31 March 2015, and combine these records with data from the fourth Integrated Household Living Conditions Survey conducted by the National Institute of Statistics of Rwanda in 2015. We found that people’s calling patterns significantly correlated with the income level of their region, which also dictated the destinations of their calls, with middle-income regions acting as a link between the richest and the poorest regions. From these results, we propose a framework for understanding the role of mobile phones in the development of social capital.
... Ce constat fait écho au principal résultat de Bessy et Larquier (2010), à partir de l'enquête Offre d'emploi et recrutement de la Dares : la qualité des appariements en termes de stabilité décroît quand les employeurs attendent de l'intermédiaire qu'ils diffusent de l'information alors qu'elle augmente quand les employeurs ont une demande de conseils de la part de l'intermédiaire. On retrouve le diagnostic ancien de Rees (1966) : ce n'est pas tant la capacité à augmenter le nombre de candidatures qui impliquera in fine un surcroît d'efficacité de la part d'un intermédiaire, mais bien plutôt sa capacité, à l'instar des réseaux de relations, à améliorer et garantir l'information qu'il fournit à l'employeur. ...
Chapter
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Résumé : Depuis le milieu des années 2000, les acteurs publics et privés participant au Service public de l'emploi ont vu leur feuille de route modifiée. Le placement est désormais au coeur de leur modèle d'intermédiation quel que soit le public accueilli. Cette référence au placement pose question dans un contexte où finalement plus aucun des acteurs du SPE ne dispose d'un accès direct simultanément aux deux versants du marché du travail leur permettant de rapprocher l'offre et la demande. De cette désintermédiation du marché du travail découlerait la montée en puissance d'un impératif d'autonomie pour inciter les chômeurs à trouver seuls leur emploi. Pourtant nombreux sont les exemples qui justifient le retour d'une intermédiation active. Les taux de sorties vers l'emploi augmentent quand les conseillers du SPE, et de Pôle emploi en particulier, s'investissent dans une relation physique et durable avec les entreprises pour les conduire à embaucher des chômeurs souvent devenus invisibles sans leur intervention. Abstract: Since the mid-2000s, public and private actors of the French Public employment service (PES) have seen their road-map changed. Placement is now the main concern of their model of intermediation, regardless of the type of job-seekers. This reference to placement raises a question in a context where, at the end, none of the PES actors has direct access to the both sides of the labor market, enabling them to match the supply and the demand. This dis-intermediation of the labor market would result in the rise of an imperative of autonomy to enhance the unemployed people to find a job on their own. Yet there are many examples that justify the return of active labor market intermediation. The rates of outflows to employment increase when the PES actors, in particular Pôle emploi, invest in a physical and long-term relationship with the firms, leading them to hire unemployed people who have often become invisible without their intervention.
... Ennen tarkempaa perehtymistä sosiaalisten verkostojen ja työllistymisen yhteyksiin on syytä luoda katsaus siihen, millä tavoin työnantajat ylipäätänsä voivat rekrytoida henkilöstöä. Työnantajan käytettävissä olevat rekrytointimenetelmät ovat tyypillisesti jaettu kaksijakoisesti formaaleihin ja informaaleihin menetelmiin (Rees 1966 (Schram ym. 2010(Schram ym. ...
Research
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Sosiaalisten verkostojen kautta tapahtuvaa epämuodollista rekrytointia on tyypillisesti pidetty kustannustehokkaana tapana rekrytoida henkilöstöä. Tämä tutkimus pyrkii lisäämään ymmärrystämme sosiaalisten verkostojen hyödyistä rekrytoinnissa. Tutkittavaa ilmiötä tarkastellaan suomalaisen rakennusalan kontekstissa. Ensisijainen huomio on kiinnitetty työnantajien muodostamiin sosiaalisiin verkostoihin. Tutkimusasetelma muodostuu kahdesta tutkimuskysymyksestä. Ensimmäisenä tutkimuskysymyksenä tarkastellaan, kuinka rakennusalan rekrytoijat suhtautuvat sosiaalisten verkostojen kautta tapahtuvaan epämuodolliseen rekrytointiin. Toisena tutkimuskysymyksenä tarkastellaan, miten ja miksi sosiaalisia verkostoja hyödynnetään käytännön rekrytointityössä. Tutkimus toteutetaan laadullisesti painotettuna monimenetelmätutkimuksena. Ensisijaisena aineistona analysoidaan kahdeltatoista rakennusalan rekrytoijalta kerättyä teemahaastatteluaineistoa. Ensisijaisen aineiston lisäksi tutkimuksessa analysoidaan täydentävää, määrällisiä ja laadullisia elementtejä sisältävää survey-kyselyaineistoa. Aineiston ja teorian suhde on tutkimuksessa perusteltu Layderin adaptiivista lähestymistapaa soveltaen. Laadullisen aineiston analyysi toteutetaan grounded theory-metodologiaa hyödyntämällä. Määrällisen aineiston analyysi toteutetaan tilastollisilla analyysimenetelmillä. Analyysin pohjalta voidaan todeta, että rakennusalan rekrytoijat kokevat sosiaalisten verkostojen kautta vastaanotetun informaation luotettavaksi ja kustannustehokkaaksi. Sosiaalisten verkostojen kautta on mahdollista vastaanottaa sellaista rekrytointia tukevaa informaatiota, jota muilla rekrytointimenetelmillä ei ole välttämättä mahdollista saada. Rekrytointia tukevaa informaatiota vastaanotetaan tyypillisimmin omalta henkilöstöltä, toiseksi eniten yhteistyökumppaneilta. Määrällisen aineiston analyysi osoittaa, että eri kokoiset yritykset hyödyntävät sosiaalisia verkostojaan eriävin tavoin. Pienet ja keskisuuret yritykset hyödyntävät sosiaalisia verkostoja rekrytoinnissaan monipuolisemmin. Suurissa yrityksissä sosiaalisten verkostojen aktivointiin tähtäävän vinkkipalkkiojärjestelmän käyttäminen on pk-yrityksiä yleisempää. Tulokset antoivat näyttöä siitä, että sosiaalisten verkostojen aktivointiin käytetyt toimet voivat edesauttaa rekrytoijaa hyödyntämään sosiaalisissa verkostoissa vallitsevaa informaatiohyötyä. Ensisijaisten tutkimuskysymysten ohessa huomattiin, että rakennusalan työnantajien muodostamissa sosiaalisissa verkostoissa vallitsee sosiaalisin sanktioin vahvistettuja normatiivisia käsityksiä toivottavasta ja ei-toivottavasta rekrytointitoiminnasta. Tulosten tulkinta sosiaalisen pääoman teorian valossa osoittaa, että työnantajien sosiaalisissa verkostoissa vallitsee jaettua sosiaalista pääomaa.
... Bireylerin yaklaşık yarısının çalıştıkları işleri bu yöntem ile buldukları görülmektedir (Wahba ve Zenou, 2005;Loury, 2006). Geçmişte işçiler buldukları işlerin büyük çoğunluğunu sosyal ilişkiler yoluyla elde etmekteydiler (Rees, 1966). Sosyal ilişkilerin iş bulma konusunda maliyeti ve yararı düşünüldüğünde dikkat çekici bir durum ortaya çıkmaktadır. ...
... The focus has been on the means employers use to collect information about potential hires (DeVaro, 2005). Rees (1966) established a distinction between formal (e.g. newspaper ads, poaching agencies) and informal recruitment methods (e.g. ...
Conference Paper
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In economics, the recruitment process of firms is largely treated as a black box. To shed light on this process, we use new representative linked employer-employee data for German private-sector establishments to explore search, selection and screening activities over the years 2012-2018. We document longitudinal changes in hiring policies and address the heterogeneity across establishments relating to size, ownership, sector, and unobserved heterogeneity. Firms’ recruitment strategies have sizeable effects on the composition of worker productivity, worker-firm match quality, the number of open vacancies, as well as expected staffing problems. Finally, we outline potential mechanisms and research gaps for future work, where there is room for more detailed and causal evidence.
... Granovetter (1973Granovetter ( , 1995 found in a survey of residents of a Massachusetts town that over 50 percent of jobs were obtained through social contacts. Earlier work by Rees (1966) found numbers of over 60 percent in a similar study. Exploration in a large number of studies documents similar figures for a variety of occupations, skill levels, and socioeconomic backgrounds. ...
Preprint
Social status and political connections could confer large economic benefits to an individual. Previous studies focused on China examine the relationship between Communist party membership and earnings and find a positive correlation. However, this correlation may be partly or totally spurious, thereby generating upwards-biased estimates of the importance of political party membership. Using data from three surveys spanning more than three decades, we estimate the causal effect of Chinese party membership on monthly earnings in in China. We find that, on average, membership in the Communist party of China increases monthly earnings and we find evidence that the wage premium has grown in recent years. We explore for potential mechanisms and we find suggestive evidence that improvements in one's social network, acquisition of job-related qualifications and improvement in one's social rank and life satisfaction likely play an important role. (JEL D31, J31, P2)
... Se bl.a.Granovetter (1974),Rees (1966).2 Se bl.a. ...
... Given spatial patterns of racial segregation in the United States and racial differences in the use of job networks, these factors are likely to vary by race. However, we also have reason to believe that the role of job information networks will vary by industry, given industry-based variation in whether employers use referrals (Rees 1966;Rees and Shultz 1970), as described further below. ...
Article
Research on racial disparities in post-prison employment has primarily focused on the differential effects of stigma on blacks and whites, but we otherwise know little about racial differences. This paper examines racial differences in post-prison employment by industry and geography. We find that the formerly incarcerated are most likely to find work in a small number of “felon-friendly” industries with formerly incarcerated whites having higher employment rates than blacks. Whites are more likely to be employed in felon-friendly industries associated with the primary labor market, particularly construction and manufacturing, which have higher wages and more job stability. To explain these racial differences, we investigate the degree to which employment among the formerly incarcerated is related to where felon-friendly employers are located and where individuals who work in felon-friendly industries live. We find that post-prison employment is associated more with proximity to workers in felon-friendly industries than with proximity to employers. Because formerly incarcerated whites are more likely to live near current workers in felon-friendly industries, the geography of opportunity in the post-prison labor market contributes to the racial disparity in post-prison employment.
... Since the 1960s, studies on paths to employment have stressed the role of personal networks or social ties in finding jobs (Rees 1966), and over the years this has been confirmed by other researchers (Wegener 1991;Holzer 1987;Wahba and Zenou 2005). With the advent of social networks, researchers have also studied the use of these tools for job hunting (Marin 2007;Cappellari and Tatsiramos 2015;Trimble and Kmec 2011;Trimble 2015). ...
Chapter
The concept of employability ranges from the individual to the global dimensions, and encompasses several domains. This chapter outlines the key socio-economic transformations that have modified transition pathways between education and work, and describes the changing nature of jobs and careers. Following major changes in the nature of employment, the concept of employability has been accordingly re-formulated: in this context, the nature of jobs for university graduates has changed towards new professional roles and positions that are not yet fixed. The chapter introduces the main shift from employment to employability as a consequence of new policies implemented, in particular in Western countries, then analyses the concept of employability that has resulted from socio-economic changes, including the entrepreneurial components, and concludes with the analysis of “university graduate jobs” as conceived today.
... Social networks facilitate job-to-worker matching in referral hiring and create inequalities among workers and social groups, which is highlighted by literature Rees (1966) and Granovetter (1973). 2 In the economy with referral hiring, workers with more friends have lower unemployment probabilities than those with fewer friends, and thus earn higher wages (Igarashi, 2016). Two main reasons lead to this result. ...
Preprint
It is well known that differences in the average number of friends among social groups can cause inequality in the average wage and/or unemployment rate. However, the impact of social network structure on inequality is not evident. In this paper, we show that not only the average number of friends but also the heterogeneity of degree distribution can affect inter-group inequality. A worker group with a scale-free network tends to be disadvantaged in the labor market compared to a group with an Erd\H{o}s-R\'{e}nyi network structure. This feature becomes strengthened as the skewness of the degree distribution increases in scale-free networks. We show that the government's policy of discouraging referral hiring worsens social welfare and can exacerbate inequality.
... Since the 1960s, studies on paths to employment have stressed the role of personal networks or social ties in finding jobs (Rees 1966), and over the years this has been confirmed by other researchers (Wegener 1991;Holzer 1987;Wahba and Zenou 2005). With the advent of social networks, researchers have also studied the use of these tools for job hunting (Marin 2007;Cappellari and Tatsiramos 2015;Trimble and Kmec 2011;Trimble 2015). ...
Chapter
In response to many demands about their role within society, in the past few decades universities have reviewed and changed curricula and teaching methods, and created, improved, or diversified initiatives to link with reference territories. In this ongoing effort, universities need to address the issue of their own “new role” and identity within a continuously changing society. This chapter outlines the key themes of the “changing university” by focusing on the employability issue, looking at emerging employability models, and reporting on the current debate about the role of the university within the social system.
... Another important example of a direct social capital effect on the economic sphere is the role of networks in job searches and labor market matching. Seminal work by Rees (1966) highlighted that both employees and employers may benefit from relying on informal job search mechanisms, such as referrals by friends and existing employees, rather than formal mechanisms, such as advertisements. Related work by Granovetter (1973) proposed that 'weak ties' to acquaintances and more distant friends play a crucial role linking dense social networks, and provide individuals with access to information from beyond their immediate environment, including information about job opportunities. ...
... This alternative job search is based on informal rather than formal channels (Rees, 1966;Holzer, 1988;Huffman and Torres, 2001). Often both types of channel are combined, although relational networks are considered more effective (Granovetter, 1973;Holzer, 1987). ...
Article
Full-text available
Job search is a central element of activation policies, which aim to transform unemployed people into active jobseekers who are subject to checks. We examine a neglected aspect of activation: sanctions. To do so we analyse, through biographical interviews with formerly-unemployed people whose benefit payments have been stopped, what it means when a job search is deemed insufficient. Although these formerly-unemployed people have failed to present enough written and tangible evidence of their job search during checks, they have pursued a different type of job search comprising more informal activities that are difficult to convert into written documents. So, we identify a twin-stranded job search – prescribed and alternative. We also point out that the gap between institutionally-framed job search and experience-based job search widens among unemployed people having low employability attributes, so that ever-stricter checks penalize those who are most vulnerable.
... Job postings, private employment agencies, direct applications or other channels are used for this purpose. It is known that researches on the effectiveness of job research methods date back to very old times (for example, Granovetter, 1973Granovetter, , 1974Myers & Schultz, 1951;Rees, 1966;Rees & Shultz, 1970). Recent studies show that friends and social connections are much more effective among job research channels (Burks, Cowgill, Hoffman, & Housman, 2015;Gee, Jones, & Burke, 2017;Gür et al., 2012;Topa, 2011). ...
Article
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Countries invest in education systems in order to increase the quality of their human capital. In this context, it is seen that especially after the expansion of the higher education systems, countries try to increase higher education graduation rates in order to improve the quality of human resources in the labor market. The ultimate goal of these efforts is to facilitate the transitions from school-to-work, and to increase social welfare by meeting the human resources needs of the labor market. The facilitation of school-to-work transitions has a direct impact on youth unemployment. School-to-work transitions are influenced not only by the quality of education from primary to higher education but also by the dynamics of the labor market. Social network analysis can provide important insights into this dynamics, and in doing so reveal that there are indeed many factors that play a key role in determining who gets a job and why, including, first and foremost, social contacts. An analysis of job search channels reveals that partners, friends, and relatives are those social contacts that are most decisive for employment outcomes. Research reveals that employers use social-contact-based reference channels much more frequently than formal channels for recruitment. Thus, employers frequently use such reference channels in recruitment. It has also been shown that the use of social-contact channels reduces employers' costs of finding suitable employees and increases productivity since employees hired through these channels also stay longer in their firms. We here explore the full potential of social network analysis to better our understanding of school-to-work transitions, to reveal in no uncertain terms the importance of social contacts, and to show how these insights can be leveraged to level the labor market for all involved. An important take-home message is that the labor market dynamics is strongly affected by the Matthew effect, such that the inequalities and the gaps between opportunities only grow and widen as the underlying social networks evolve. It is therefore important to mitigate these effects well before school-to-work transitions come into play, namely during the education. In particular, we assert that minimizing the inequalities during education should effectively mitigate the uneven impact of social networks on school-to-work transitions.
... However, informal modes of research or social networks favor intensive prospecting and provide more precise information on working conditions and the tasks to be performed (Rees, 1966). These modes place more emphasis on prospecting through the social network. ...
... Since the 1960s, studies on paths to employment have stressed the role of personal networks or social ties in finding jobs (Rees 1966), and over the years this has been confirmed by other researchers (Wegener 1991;Holzer 1987;Wahba and Zenou 2005). With the advent of social networks, researchers have also studied the use of these tools for job hunting (Marin 2007;Cappellari and Tatsiramos 2015;Trimble and Kmec 2011;Trimble 2015). ...
Chapter
This chapter discusses trends in pedagogies for employability. It reports on findings of research about the most effective methods for enhancing employability and then explores the relation between the place and pedagogical approaches, considering the value of place awareness for employability potential. Finally, it describes the main features of rural economies and seeks to identify elements there that can support the employability of graduates.
... E.g., seeMyers and Shultz (1951);Rees (1966);Rees, Shultz et al. (1970);Granovetter (1973); Montgomery (1991); Granovetter (1995); Ioannides and Datcher-Loury (2004); Topa (2011); Rubineau and Fernandez (2013); Zeltzer (2020). 26 E.g., see Fernandez, Castilla, and Moore (2000); Brown, Setren, and Topa (2012); Fernandez and Galperin (2014); Burks, Cowgill, Hoffman, and Housman (2015); Dustmann, Glitz, Schönberg, and Brücker (2016); Pallais and Sands (2016); Bond and Fernandez (2019); Benson, Board, and Meyer-ter Vehn (2019). ...
... 19. The use of the immigrated population is motivated by the contributions of Rees (1966) and Granovetter (1973) concerning the similiarities existing between job seekers and referrals. 20. ...
Thesis
The questions related to the integration of immigrants in host countries are positioned in an international context characterized by an increase in population flows in recent decades. The mechanisms determining the integration of immigrants into the labor market depend on individual, social and economic characteristics. Based on this observation, we analyze in this thesis the role of social relations as a determinant influencing both the integration of immigrants on the labor market and the occupational mismatch of immigrants. Concerning the role of social networks as a means of job search, we analyze, using French data, the relationship between network effect and economic cycle. Our results show that the network effect is countercyclical. The use of referrals to find a job is stronger during recessions than during expansion periods. We extend our analysis by studying the relationship between occupational mismatch and the network effect. Beyond individual characteristics that may contribute to explain the probability of being over/undereducated, we hypothesize that finding a job through a referral influences the educational match between immigrants and the jobs held. We observe an ambiguous effect between the role of referrals and occupational mismatch according to the origin of immigrants.
... There are two different types of informal methods: the use of social network contacts, which often entails contacting friends, colleagues, and relatives, and direct application, in which the jobseeker approaches firms directly. Formal search methods entail either a public display of information or a formal intermediary and can include methods such as responding to ads and using employment agencies (Rees, 1966;Van Hoye et al., 2013). 3 Searching for jobs through social networks should be facilitated by having a good network to ask, suggesting that an actor probably devotes more energy to asking contacts for assistance as his or her social capital increases. ...
Article
Social networks play an important role in the employer–worker match, and the social capital perspective has been used to understand how social networks contribute to labour market inequality. This paper investigates the effect of social capital on achieving a stable labour market position for young adults, examining how boosted labour market self-efficacy is a possible mediator. The paper also examines whether social capital and self-efficacy are related to the preferred job search method. The study utilises a Swedish survey of young adults that is linked to tax register data on earnings. Here, social capital is defined as an extensive network and measured with the position generator, asking about knowing contacts in various occupations. The paper analyses heterogeneous effects that depend on the respondents’ initial status regarding employment and job search. The results show that social capital and job-finding self-efficacy are positively related to achieving stable employment for the initially not employed job searchers, but there is no effect for those initially employed and not searching for a new job. Furthermore, an analysis of job search methods reveals that social capital is positively related to preferring social networks and direct application and negatively related to searching through public employment services. The results also indicate that self-efficacy mediates only a little of the relationship between social capital and prospective employment, suggesting that job-finding self-efficacy likely only contributes slightly to how social capital affects labour market outcomes.
... 22 In that (non-generic) case, the mixing becomes irrelevant since there is 0 net expected value in the relationship to either side. 23 Thus, equilibrium behavior in the pool stage is such that firms hire workers from the pool at a wage of w min if the expected value of workers in the pool exceeds w min , do not hire from the pool if the expected value is below w min , and both sides can mix arbitrarily if the expected value of workers in the pool is exactly w min (which 19 For instance, see Rees (1966) ;Fernandez, Castilla and Moore (2000); Brown, Setren and Topa (2016); Pallais and Sands (2016) 20 For instance, see the references in Ioannides and Datcher-Loury (2004); Eriksson and Rooth (2014). 21 See Beaman and Magruder (2012); Beaman et al. (2018) for discussion of how workers choose whom to refer. ...
Preprint
We study the consequences of job markets' heavy reliance on referrals. Referrals screen candidates and lead to better matches and increased productivity, but disadvantage job-seekers who have few or no connections to employed workers, leading to increased inequality. Coupled with homophily, referrals also lead to immobility: a demographic group's low current employment rate leads that group to have relatively low future employment as well. We identify conditions under which distributing referrals more evenly across a population not only reduces inequality, but also improves future productivity and economic mobility. We use the model to examine optimal policies, showing that one-time affirmative action policies involve short-run production losses, but lead to long-term improvements in equality, mobility, and productivity due to induced changes in future referrals. We also examine how the possibility of firing workers changes the effects of referrals.
... Despite mounting empirical evidence, attempts to incorporate the concept of migrant network in theoretical analysis of labor migration remain scanty. In this paper, we shall explore the cost-saving aspect of migrant networks and accordingly characterize the resulting pattern of migration in a dynamic setting (Rees 1966;Montgomery 1991). ...
Article
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International migration has assumed significance in the policy discourse as a livelihood strategy adopted by households and individuals in Bangladesh. Migration whether within a country or across borders entails both costs and benefits. For migrants to make any significant strides in securing improvement in wellbeing, benefits accruing from migration should exceed the costs involved. This paper sought to provide assessment of the costs and benefits pertaining to international migration from Bangladesh to Italy. In this paper, we examine the role of migrant network in determining patterns of outmigration. Conditions under which migration equilibrium may permit multiple steady states are identified. The study employed data collected through questionnaire-survey and the data was analysed using cost-benefit formula. Our analysis discusses instances where migration generates its own demand and explains differences in migration propensities across potential sources of outmigration. The findings indicate that in real terms benefits outweigh the costs of migration. This means that there is economic justification for people to undertake out-migration. The paper, concludes that international migration is beneficial to those who embark on it as a livelihood strategy. Therefore, to reduce the positive and negative impacts of international migration and development to their equivalent money value Cost-Benefit Analysis determines whether on balance the migration is worthwhile. The equivalent money value is based upon information derived from migrants and labour market choices, the demand and supply schedules for labour affected by the movement.
... Yet, firms face a trade-off in their choice of hiring channels (Montgomery, 1991). Under the "good match" hypothesis (Rees, 1966), current employers can help overcome the asymmetric information problem and create better employment matches as they know both the firm and the people in their network. By contrast, the "limited choices" hypothesis stresses that finding employment through social networks limits the opportunities and match quality (Loury, 2006). ...
... There are two different types of informal methods: the use of social network contacts, which often entails contacting friends, colleagues, and relatives, and direct application, in which the jobseeker approaches firms directly. Formal search methods entail either a public display of information or a formal intermediary and can include methods such as responding to ads and using employment agencies (Rees, 1966;Van Hoye et al., 2013). 3 Searching for jobs through social networks should be facilitated by having a good network to ask, suggesting that an actor probably devotes more energy to asking contacts for assistance as his or her social capital increases. ...
Article
Young adults in Europe sometimes have trouble moving away from their parents and obtaining a home of their own, which is considered an important step in the transition to adulthood. This paper investigates whether nest-leaving is affected by individual social capital and parental economic capital. The paper also examines how these resources are related to the type of housing tenure obtained and whether the housing was acquired through informal channels. In addition, the paper assesses whether differences in access and returns to social capital can explain the later nest-leaving of the children of immigrants. The study uses a Swedish two-wave panel survey of young adults aged between 19 and 22. Individual social capital is operationalized as an extensive social network measured with the position generator, while parental economic capital is estimated with registered disposable income. The results show that individual social capital is positively related to prospective nest-leaving, but parental income is not. Nevertheless, both individual social capital and parental economic capital are related to the obtained housing tenure type: social capital is linked to informal ‘second-hand’ rental agreements often acquired through contacts, whereas having high-income parents is linked to obtaining owned housing tenure. The children of immigrants are found to be more likely to live with their parents, but this is not explained by lower access or return to social capital.
... Since the 1960s, studies on paths to employment have stressed the role of personal networks or social ties in finding jobs (Rees 1966), and over the years this has been confirmed by other researchers (Wegener 1991;Holzer 1987;Wahba and Zenou 2005). With the advent of social networks, researchers have also studied the use of these tools for job hunting (Marin 2007;Cappellari and Tatsiramos 2015;Trimble and Kmec 2011;Trimble 2015). ...
Chapter
This chapter addresses the micro-level of graduate employability, the level of the students and graduates. The concept of self-perceived employability is defined. Perception depends on aspects that include more than formal education: in particular, sociological research has advanced understanding of how the labour market, as a construct of individuals, is perceived subjectively by those preparing for or seeking work. Also, the perception of one’s employability is conditioned by one’s awareness of the global and the local labour markets, and of the channels to access work, which vary according to the work sector or type of company.
... Finally, incarceration -especially imprisonment -can deplete the social capital that one can access after prison (Loeffler, 2013). The combination of time and distance away from home can make it difficult to stay connected to relatives and friends, especially "weak ties" that can be especially useful for finding jobs (Rees, 1966;Granovetter, 1973). ...
Thesis
My dissertation covers topics in the economics of crime and the interesction between behavioral and development economics. The first chapter provides causal evidence that sentencing low-level offenders in the State of Michigan to prison rather than probation lowers their future criminal behavior but only through incapacitation, that is, during the time they spend in prison. We identify two sources of incapacitation: primary, from the original sentence, and secondary, from higher rates of future imprisonment among those who were initially sentenced to prison. The second chapter studies how economic decision making changes along the transition from college to the labor market. By collecting panel data from students in a university in Colombia, we are able to track changes occurring after students who are in their last semester of college receive and accept a job offer, and after they receive a paycheck relative to a comparison group of students who remain in college. We find evidence that students who transition to the labor market are less present-biased, more generous, and report having lower stress about finances and higher access to resources after the job offer. After starting to work and receiving a paycheck, they perform worse on cognitive tasks and report being more worried and frustrated than students in the comparison group. This suggests that there may be greater cognitive load associated with becoming more independent and earning money. We also highlight the role of incorporating phychological measures in experimentally-elicited preference tasks. Even though it seems that last-semester students become less risk averse when receiving and accepting a job offer, this result vanishes when controlling for psychological factors. In the third chapter, we study gender differences in beliefs regarding performance and in the updating process in the developing country context. Students in the sample are enrolled in a test-preparation course to take a high-stakes college entrance exam. They are randomized into receiving or not receiving feedback about their relative ability in the five areas covered by the exam. The findings suggest that there are substantial biases in assessing own ability. Across all areas of the test, between 50 and 70 percent of the students fail to correctly predict the quartile in which their score will be. Moreover, women are more biased and more likely to underestimate their performance in math and overestimate in text analysis relative to men. I show evidence that feedback may help close the gender in gap in confidence as women report being more positive about their chances of admission to this university while the men seem less sure of this outcome.
Book
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After ten years, we have before us a new study on the position of young people in Slovenia, Mladina 2020 (Youth 2020). The national study, which concerns itself with the young generation, specifically 15- to 29-year olds, is of paramount importance for the client (Office of the Republic of Slovenia for Youth), as well as for young people and society as a whole. With the aid of the Mladina 2020 (Youth 2020) study and the recommendations that researchers offered as part of the final report, the Office’s goal is primarily to formulate evidence- based public policies that have an impact on young people’s lives.
Article
Social status and political connections may confer large economic benefits on an individual. Previous studies focused on China have examined the relationship between Communist Party membership and earnings and have revealed a positive correlation. However, the correlation could be partly or totally spurious. Using data from three surveys spanning three decades, we estimate the causal effect of Chinese Communist Party membership on monthly earnings in China. We find that, on average, membership in the Communist Party of China increases monthly earnings and the wage premium has grown last three decades. We explore potential causes and discover evidence that improvements in social networks and social rank, acquisition of job‐related qualifications and greater life satisfaction play important roles in increased earnings.
Article
We investigate if there are positive economic effects for individuals residing in ethnic neighborhoods, in particular if the likelihood of labor market participation among foreign-born is affected by residentially aggregating with other people from one’s same native region. We also examine to what extent the income level among foreign-born who have a job is affected by the extent to which they congregate in ethnic enclaves. We use Swedish micro-level data for the time period 2007 to 2015 and run a Heckman estimation for four distinct immigration groups: those from (a) the Middle East; poor and middle-income countries in (b) Africa and (c) Asia; and (d) and those from the former Yugoslavia. We control for personal and neighborhood characteristics as well as workplace characteristics. The results suggest that, in some cases, there may be positive effects from ethnic concentration, but even more from living with first- and second-generation immigrants in general.
Article
I examine the effects of geographic distribution of firms on the expected stock returns. Information spillovers and coordinated actions by interacting managers increase the cyclicality of wages in agglomerated industries compared to dispersed industries. Consequently, geographic agglomeration provides firms a “natural hedge” against aggregate shocks. In contrast, geographically dispersed firms have higher exposure to aggregate shocks. A portfolio that goes long on geographically dispersed industries minus agglomerated industries – the GDMA portfolio – captures aggregate shocks. Stocks that co-vary closely with the GDMA portfolio returns earn higher expected returns. In the time-series, the premium is more pronounced during recessions when investors shrink from risk. In the cross-section, the premium is more pronounced among low profitable firms that are more vulnerable to adverse shocks.
Book
After ten years, we have before us a new study on the position of young people in Slovenia, Mladina 2020 (Youth 2020). The national study, which concerns itself with the young generation, specifically 15- to 29-year olds, is of paramount importance for the client (Office of the Republic of Slovenia for Youth), as well as for young people and society as a whole. With the aid of the Mladina 2020 (Youth 2020) study and the recommendations that researchers offered as part of the final report, the Office’s goal is primarily to formulate evidence-based public policies that have an impact on young people’s lives. These should create better conditions for young people’s transition to adulthood and give mature generations peace of mind, knowing that the young generation is empowered and well prepared to face all life circumstances. However, is this true? So what are young people like at this moment in time?
Article
We study whether employment history provides information about a worker’s “work attitude”, that is, the tendency to act cooperatively and reliably in the workplace. We conjecture that, holding all else equal, frequent job changes can indicate poor work attitude and that this information is transmitted through employment histories. We find support for this hypothesis across three studies that employ complementary laboratory, field, and survey experiments, as well as in labor market panel data. First, a tightly controlled laboratory labor market experiment demonstrates that prior employment information allows employers to screen for reliable and cooperative workers and that these workers obtain better employment outcomes. Secondly, we conduct a field experiment that varies the frequency of job changes in applicants’ resumes and find that those with fewer job changes receive substantially more callbacks from prospective employers. Thirdly, a survey experiment with human resources professionals confirms that the resume manipulations in the field study create different perceptions of work attitude and that these largely account for the callback differences. Finally, we find evidence consistent with our hypothesized relationships in empirical labor market data. Our work highlights the potential importance of job history as a signal of work attitude in labor markets, and points to a potential cost of frequent job changes.
Article
The widespread use of employee referrals raises questions regarding how they affect labor market outcomes. Does referral hiring lead to a more efficient allocation of workers compared to when hiring is possible only on a competitive market? To utilize the social links of their employees, are employers willing to pay a wage premium? We develop a model and provide results from a laboratory experiment to address these questions. We find that employers often hire via referrals, which in turn mitigates adverse selection and elevates wages. Importantly, employers anticipate the future value of hiring high-productivity employees—which consists of gaining access to valuable social links—and are thus willing to take the risk of offering wage premiums when hiring on the competitive market. We also find that employers' risk aversion and the dynamic nature of the hiring process can help account for the inefficiency remaining in the labor market.
Chapter
Like all markets, the market for labour is imperfect and characterised by information asymmetry. On the one hand, those looking for a job are unlikely to know about all potential employment opportunities, or all the details of the post and the employer expectations that come with the role. On the other hand, employers cannot know everything about all possible candidates, their history, and their suitability for the work. This is particularly true of skilled roles, and job searches can be both lengthy and expensive. Modern labour markets have developed numerous ways of dealing with the issue of asymmetric information. Labour market intermediaries, for example, play an important role in linking employers with employees, through recruitment or employment agencies, the advertising of job opportunities on internet search boards, targeted e-mailing lists, newspapers, job centres, and even street corner day labour queues. There are also a number of ‘signalling devices’ which are used to demonstrate a candidate’s suitability for a particular role, such as educational or professional qualifications, and the use of references and personal recommendations. None of these methods are perfect, but they do go some way towards alleviating the risk, uncertainty, and high transaction costs inherent in the finding and hiring of labour. This paper explores whether any comparable means were used to overcome similar problems in the Roman labour market. It considers the evidence for labour market intermediaries, such as labour contractors, employment agencies, and informal labour exchanges; the potential role of ‘professionalisation’ and qualifications, in particular apprenticeships; the utilisation of networks and personal recommendations, including the possible use of letters of recommendation, and both formal and informal associations, ranging from collegia and groups of migrant traders to local networks within urban neighbourhoods and rural communities; and finally, the extra-economic coercion of workers and the employment of dependent labour, including the enslaved, formerly enslaved, and clients.
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El uso de internet permite realizar ahora diferentes actividades que antes se realizaban personalmente, incrementando así la productividad y el crecimiento económico de los países. Sin embargo, es indispensable poseer conocimientos necesarios para asociar su uso con actividades productivas en la sociedad. El presente documento investiga cuál es la efectividad del uso de la internet en la búsqueda de empleo en el mercado laboral ecuatoriano. El diseño metodológico incorpora un modelo de elección discreta que involucra como variable de tratamiento el método de búsqueda de empleo y como variables de control las características socioeconómicas de los individuos, esto sobre la probabilidad de encontrar trabajo. La investigación emplea los microdatos de la Encuesta Nacional de Empleo, Desempleo y Subempleo (ENEMDU) recopilados por el Instituto Nacional de Estadística y Censos de Ecuador (INEC) en los años 2018 y 2019. Los principales resultados sugieren que la búsqueda de oportunidades laborales a través del internet incrementa la probabilidad de encontrar empleo en un 3%. Igualmente se encuentra que el género, los niveles educativos, edad, estrato y localización geográfica del trabajador impactan de manera significativa la probabilidad de encontrar empleo.
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This paper investigates the determinants of editorial board membership, for 17 leading journals in economics, from 1997 to 2009. We find that the researcher's scientific profile and connections to the editors in charge are significant predictors of editorship. Ceteris paribus, after controlling for unobserved researcher heterogeneity, scholars with links to editors in the co‐authorship network are more likely to serve as editors and this advantage decreases sharply with the social distance. Being a present or former departmental colleague or protégé of an editor‐in‐charge is positively associated with the probability of appointment to the board. Résumé Liens sociaux et comités éditoriaux en économie . Cet article explore les éléments déterminants relatifs à la composition des comités éditoriaux de 17 revues économiques de premier plan entre 1997 et 2009. Nous avons constaté que le profil scientifique du chercheur ainsi que ses relations avec les éditeurs augmentent la probabilité d’être membre d’un comité éditorial. Toutes choses étant égales par ailleurs, et après avoir neutralisé l’hétérogénéité non observée des chercheurs, il apparaît que les chercheurs en lien avec des éditeurs dans un réseau de corédaction sont davantage susceptibles de devenir éditeurs à leur tour, et que cet avantage s’amenuise drastiquement avec la distance sociale. Le fait d’avoir été collègue au sein d’un même département ou mentoré par un éditeur est associé de fac¸on positive à la probabilité d’intégrer le comité éditorial.
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