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Information Networks in Labor Markets
... In particular, we observe migration decisions for every possible network size and structure; we thus can estimate, for instance, that roughly 4% of individuals with ten contacts in a potential destination d eventually migrate to that location. More broadly, we observe that 1. Classic papers documenting the "prevailing" view include Rees (1966), Greenwood (1969), Granovetter (1973), Montgomery (1991), and Borjas et al. (1992). More recent examples include Munshi (2003), Winters et al. (2001), Dolfin and Genicot (2010), Patel and Vella (2012), Fafchamps and Shilpi (2013), Mahajan and Yang (2017), Giulietti et al. (2018), and Bertoli and Ruyssen (2018). ...
... In this literature, many scholars have noted the important role that social networks play in facilitating migration. Early examples in the economics literature include Rees (1966) and Greenwood (1969); a large number of subsequent studies document the empirical relationship between network size and migration rates. 5 More recently, Munshi and Rosenzweig (2016) document 5. Examples include Montgomery (1991), Borjas et al. (1992), Munshi (2003), McKenzie and Rapoport (2010), Dolfin and Genicot (2010); Beaman (2012), Patel and Vella (2012), Bertoli et al. (2013), and Bertoli and Ruyssen (2018). ...
... Such models often support the stylized narrative that the primary function of networks is to diffuse information about economic opportunities (cf. Rees, 1966;Ioannides and Loury, 2004). However, the patterns revealed by our data are hard to reconcile with these models, and suggest that some of the value of social networks comes from higher-order network interconnections. ...
How do social networks influence the decision to migrate? Prior work suggests two distinct mechanisms that have historically been difficult to differentiate: as a conduit of information, and as a source of social and economic support. We disentangle these mechanisms using a massive ‘digital trace’ dataset that allows us to observe the migration decisions made by millions of individuals over several years, as well as the complete social network of each person in the months before and after migration. These data allow us to establish a new set of stylized facts about the relationship between social networks and migration. Our main analysis indicates that the average migrant derives more social capital from ‘interconnected’ networks that provide social support than from ‘extensive’ networks that efficiently transmit information.
... Estas opciones se distinguen por el nivel y el tipo de información laboral que permiten circular. En las primeras, hay menos incertidumbre en cuanto a la calidad del empleo y a las características del candidato, mientras que, en las segundas, la información se maneja de manera privilegiada, donde algunas personas pueden tener más y mejor información tanto de empleadores como de potenciales empleados (Méndez, Castro Lugo y Sánchez Mena, 2018;Reid, 1972;Rees, 1966). ...
... Como es el caso de las personas que viven en las zonas marginales de Cali, que también usan sus contactos sociales para conseguir empleo y cuyas características socioeconómicas condicionan sus trayectorias laborales. A saber, en la literatura se encuentra que, la consecución de un empleo está afectada cuando se cuenta con contactos sociales con bajos niveles educativos (Chua, 2011;Mouw, 2003), escasa experiencia laboral (Marsden y Hurlbert, 1988), estar en situación de pobreza (Falcon, 1995) o como lo plantea Lin (1999a), menos favorecidos: mujeres, menos educados y menos calificados; y aunque puede ser un recurso al alcance de todos, de bajo costo tanto para buscadores como empleadores (Falcon, 1995;Rees, 1966), no siempre resultan eficaces para encontrar un empleo o llenar una vacante si los contactos están en la misma situación laboral, es decir, desempleados. ...
... Vale la pena aclarar, que el uso de las redes de contactos sociales en la búsqueda de empleo, como lo muestra la amplia literatura sobre el tema, no es exclusivo de quienes están en situaciones sociales y económicas específicas. Rees (1966) señala la importancia de las alternativas informales, sobre todo, de los vínculos débiles, con quienes se tiene un contacto esporádico y que actúan como puentes para que la información laboral llegue a más personas; argumento que lo refuerza Granovetter (1973) al plantear que este tipo de vínculos son los que permiten que la información llegue de o a otros círculos sociales más allá del propio, de manera que los vínculos débiles poseen información laboral no redundante (Yakubovich, 2005) convirtiéndose en un capital social muy importante cuando se está en la búsqueda de empleo (Vacchiano, Martí, Yepes-Cayuela y Verd, 2018; Bachmann y Baumgarten, 2012; Montgomery, 1991). ...
La búsqueda de empleo usando los contactos sociales a pesar de ser una práctica común, en ocasiones no genera los resultados esperados. Con el objetivo de comprobar lo anterior, en este documento se configuran las redes de contactos sociales de un grupo de jóvenes que viven en contextos de marginalidad y violencia de las comunas 1, 14, 16, 18 y 20 de Cali que participaron en el programa denominado Tratamiento Integral a Pandillas - Jóvenes Sin Fronteras (TIP-JSF), un proceso de intervención psicosocial desde una perspectiva integral que promovía la inclusión social. Las redes de contactos sociales halladas a través de una encuesta se caracterizan por ser pequeñas y cerradas, aumentando la probabilidad de que quienes las conforman, presenten el mismo estado laboral: desempleo o informalidad laboral. Es clave, entonces, que las/os jóvenes amplíen sus contactos para que los vinculen con otros que les puedan brindar información de mejores vacantes laborales.
... Economists and sociologists of work have since multiplied studies to better specify and evaluate them. Rees (1966) in his founding work offers a fruitful reading grid to characterize their diversity. Indeed, it groups them into two categories, namely informal channels, characterized by the good quality of the information made available, and formal channels characterized by a large quantity of information disseminated. ...
... Source: authors, based on Rees (1966). ...
... In the specification drawn up by Rees (1966), ICTs figure among the formal channels of access to employment. Despite the increasing frequent use of ICTs, Mastafi (2016) notes that there is not absolute unanimity on the definition of this concept. ...
Based on ECAM4 (2014) database, this paper aims at analysing the effect of Information and Communication Technologies (ICTs) based on youth’s access employment aged between 15-35 years old in Cameroun. The cases of employees of more than 15 and thos of more than 35 years old are considered for comparisons. In order to solve the endogeneity bias of the simple probit model, a robust instrumental variable probit model was used, and this gave consistent results with regard to the diagnostics based on the specificity/sensitivity tests. The estimates suggest that: (i) using the internet increases the chances of getting a job, and this for all age group considered; (ii) this increase it between 17-38% for youth, 0.39-1.118% for seniors and 18-40% for all workes; (iii) compared to senior employees, the young internet users are 25 times luckier to find a job. Finally, this result is in accordance with the literature which considers ICTs as the most important component of labor market.
... 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. ...
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.
... In fact, the individual will devote not only time to job prospecting and research but also financial resources, which is generally reflected in terms of opportunity cost ( [45,46]). [47] in his reference work offers a fruitful reading grid to characterize the diversity of employment access by distinguishing between informal channels, which offer the best information available, and formal channels, characterized by a large quantity of information disseminated. Spence [48] added that by choosing a channel, the unemployed give a signal to employers about their productivity. ...
... ICTs are part of the register of formal employment access channels and more specifically as a component of advertisements. In the specification drawn up by [47], ICT figure among the formal channels of access to employment. Since the mid-1990s, ICT, in the internet toll case, it is played an increasing role in the coordination of the labor market [57]. ...
This study aims to explore the impact of Information and Communication Technologies (ICTs) on job acquisition for young people aged 15 to 35 in Cameroon. The research uses data from the fourth Cameroon Household Survey (CHS-4) conducted by the National Institute of Statistics (NIS) in 2014. The study compares the results with those of senior employees to highlight the digital divide. The results suggest that internet use increases the probability of finding a job, regardless of age group, between 15 and 31 % for young people, between 0.31 and 1.214 % for senior citizens, and between 15 and 38 % for all workers. Young Internet users are 15 times more likely to find a job compared to senior employees. The results are consistent after specificity/sensitivity tests. The study contributes to the understanding of the digital divide and its impact on job acquisition.
... La búsqueda de empleo mediante canales informales (contactos, amigos, familiares, etc.) es un método de bajo coste y, en general, muy productivo para encontrar empleo (Rees, 1966;Pellizzari, 2010;Alva et al., 2017). De la misma forma, los empleadores también pueden utilizar este tipo de referentes para contratar empleados. ...
El objetivo de este artículo es analizar los métodos de búsqueda utilizados por las personas desempleadas en España, con un especial interés en el papel que desempeñan las oficinas públicas de empleo. Para ello, en primer lugar, se presenta un panorama a nivel europeo, que muestra, mayoritariamente, el predomino de los métodos informales sobre los formales, si bien en cuatro países las oficinas públicas de empleo son el principal método de búsqueda. Posteriormente, el análisis para España muestra que las personas que utilizan las oficinas públicas de empleo son personas de mayor edad y con un menor nivel educativo.
... Эти и другие аналогичные работы представляют нам важные доказательства корреляции поведения индивидов с поведением связанных с ними людьми, а в случае заболеваний (учитывая природу заражения) предоставляют даже некоторые прямые доказательства диффузии. Существуют классические исследования, которые показывают важность социальных связей для распространения информации, например, о вакансиях [6,7] или показывают то, что даже случайные знакомства или непостоянные контакты («слабые связи») индивидов могут быть важны для распространения информации [8,9,10]. Некоторые другие работы идентифицируют местные корреляции в статусе занятости (в окрестностях Чикаго), изучая степень, в которой местные взаимодействия важны в сфере занятости [11,12,13]. ...
В данной публикации представлены результаты исследования скорости распространения информации в группе школьников. Исследование выполнено методом сетевого анализа. Цель исследования – моделирование и анализ социальной структуры сообщества школьников и скорости распространения информации. Также ставились задачи получения ответов на следующие вопросы: насколько отличаются сетевые характеристики группы школьников от случайного графа; подчиняется ли устройство сети дружеских взаимосвязей внутри коллектива общим сетевым законам; каковы ключевые отличия распространения информации в графе, построенном на примере группы школьников, от распространения ее в случайном графе. Случайный граф с аналогичными базовыми параметрами был специально построен в целях данного исследования. Работа предваряется развернутым анализом исследований в области сетевого анализа, социальных моделей и поведения людей. Далее представлены эмпирические данные, которые собраны специально в целях проведения данного исследования. Объяснено, как и для чего нами получены данные сведения. В основной части исследования отражено то, что на базе собранных эмпирических данных, нами построены графы для изучения основных характеристик рассматриваемого сообщества школьников. Анализ включает в себя определение наличия кластеров, расчет и анализ центральности графа группы школьников и его сходства со случайным графом. На основании проведенного эмпирического исследования анализ результатов показал, что информация лучше распространяется (за меньшее число итераций) именно в условиях реальной группы школьников. Напротив, в случайной сети связи распределены более равномерно, что замедляет в ней скорость распространения информации. Исследование снабжено необходимыми пояснениями, а также иллюстрирующими графиками и таблицами.
... In the most cited article on social networks, 1 Granovetter (1973) argued that the most important connections we have may not be with our close friends but our acquaintances: people who are not very close to us, either physically or emotionally, help us to relate to groups that we otherwise would not be linked to. For example, it is from acquaintances that we are more likely to hear about job offers (Rees, 1966;Corcoran, Datcher and Duncan, 1980;Granovetter, 1995). Those weak ties serve as bridges between our group of close friends and other clustered groups, hence allowing us to connect to the global community in a number of ways. 2 Interestingly, the process of how we meet our romantic partners in at least the last hundred years closely resembles this phenomenon. ...
We used to marry people to whom we were somehow connected. Since we were more connected to people similar to us, we were also likely to marry someone from our own race. However, online dating has changed this pattern; people who meet online tend to be complete strangers. We investigate the effects of those previously absent ties on the diversity of modern societies. We find that social integration occurs rapidly when a society benefits from new connections. Our analysis of state-level data on interracial marriage and broadband adoption (proxy for online dating) suggests that this integration process is significant and ongoing.
... The importance of references in the labor market has been known to economists and sociologist for several decades (Rees, 1966, Granovetter, 1973. Widely cited studies put the prevalence of references as a way of filling positions well above 50%. ...
I implement a prompt-based learning strategy to extract measures of sentiment and other features from confidential reference letters. I show that the contents of reference letters is clearly reflected in the performance of job market candidates in the Economics academic job market. In contrast, applying traditional ``bag-of-words'' approaches produces measures of sentiment that, while positively correlated to my LLM-based measure, are not predictive of job market outcomes. Using a random forest, I show that both letter quality and length are predictive of success in the job market. Letters authored by advisers appear to be as important as those written by other referees.
... If HR professionals have lower opportunity costs than hiring managers do for shortlisting candidates, HR professionals might be less likely to rely on network status or referrals as an easily accessible but imprecise signal. Second, the information advantage theory of referrals argues that network hiring (and the use of referrals) creates an information flow between the employer and the candidate: the referrer enriches the candidate's information set about the job, and the referrer shares with the employer informal, difficult-to-access information about the candidate's quality, such as personality traits (Rees, 1966). Given that HR is plausibly more external to the job vacancy and the referrer, referrals might have a lower informational value for HR vis-à-vis hiring managers; the two groups likely differ in their access to the information passed on by the referrer. ...
A substantial body of research examines the relevance of hiring as a source of gender disparities in organizations. However, there is limited evidence on how different sets of key organizational decision makers contribute to gender disparities in hiring outcomes. To address this research gap, we exploit the staggered adoption of a new hiring process in a multinational corporation, which transferred from hiring managers to HR departments the task of shortlisting: narrowing a large pool of candidates to a more manageable set before final decision making. Using a difference-in-differences design, we find that the transfer of shortlisting responsibility increased the share of newly hired women. Additional tests based on quantitative and qualitative data are largely consistent with our finding that the transfer of shortlisting from hiring managers to HR departments led to fewer gender disparities in hiring outcomes given the increased expert knowledge in evaluating candidates and reduced opportunity costs for conducting such evaluations. Our setting offers a unique opportunity to help isolate key organizational decision makers’ role in contributing to gender disparities in hiring outcomes, and our findings have implications for how to alleviate gender disparities in employment.
... The earliest study in the field of economics that incorporated social networks to explain economic phenomena was based on the labor market. Rees (1966) has mostly discussed the possible networks that may exist in the labor market. ...
Between 18 and 21 years, the activities of young adults diverge into pursuing further education or entering the labor force, or Not in Educational Employment and Training (NEET). Very few studies analyze the factors involved in these three choices and in particular, how the role of family and non-family networks varies across these activity statuses of youth in India after controlling for other covariates. Hence, this study seeks to examine the role of household networks in the choice of activity of male youth in India. After controlling for other key-covariates, we find that both family and non-family networks increase the odds of enrolling in higher education or training compared to NEET while non-family networks favor workforce participation compared to NEET. The results further highlight that in addition to the number of ties the types of ties have a greater influence on the work-activity-related decisions of the youth.
... One prominent example of how social networks play a role is that social networks can signifi cantly facilitate job search. Studies over the recent decades show that throughout the world at least 30%~50% of job seekers got their jobs through the help of relatives or friends (Rees, 1966;Addison and Portugal, 2002;Wahba and Zenou, 2005;Zhang et al., 2008;Topa, 2011). ...
Based on a survey of migrants in 12 cities across four major urbanizing areas in China, this paper empirically studies the impact of the size of individual social networks on the migrants’ wages. After controlling for potential endogeneity using an instrumental variable approach, our empirical results from 2SLS estimation provides no evidence for significant average causal effect of network size on wage. A further exploration of quantile regression analysis with endogeneity issue managed by using the control function approach shows that a significant positive network size effect can only be found in the low-income end.
... Second, ORU can also help improve performance by addressing a central challenge of hiring: uncertainty (Rees, 1966;Stigler, 1962). Researchers have identified at least three ways ORU in particular improve information for both firms and future employees which in turn, decreases uncertainty. ...
Purpose
The role of family business staffing practices in their ultimate success remains largely unknown. The purpose of this paper is to test the notion that firms with greater family essence manifest their commitment by leveraging referrals as a recruitment source, which in turn is associated with higher performance. The hypothesized model posits that reduced agency costs from hiring through owner referral utilization (ORU) provide high-family essence firms with stronger performance.
Design/methodology/approach
The study draws upon a sample of 194 small and medium-sized family business owners.
Findings
Findings from OLS regression and the PROCESS model in SPSS support the hypothesis that recruiting nonfamily employees from referrals helps lessen agency conflicts and serves as an intervening mechanism in the relationship between family firm essence and firm performance.
Originality/value
This study draws on agency theory to shed light on how family firms successfully bring nonfamily employees into the fold despite their human resource limitations. The results extend theory on family businesses by demonstrating that those with higher degrees of family essence are more likely to attract applicants via ORU. Leveraging this recruiting practice allows family businesses to hire nonfamily employees who share the values and goals of the family firm, thus lowering agency costs and fostering higher performance. More broadly, the findings offer insight into the role of staffing practices in family firm success.
... Granovetter (1974) goes a little further, and argues that the network of contacts can explain to a greater extent the achievement of a job, even more than the same traditionalist theories that make references to human capital; that is, those that have to do with the accumulation of productive capacities such as years of education. Authors such as Rees (1966), Mcentarfer (2002) and Montgomery (1991) argue that employers often use personal networks in employee selection processes, especially those that derive from recommendations from their own employees, particularly the most productive; as they infer that the recommended people, due to the fact of belonging to the social circle of a productive worker, will also have high levels of productivity. ...
Objetivos: en este artículo se estudian los principales canales de búsqueda de empleo en Neiva, ciudad caracterizada por tener la mayor tasa de desempleo de Colombia. El propósito fundamental es analizar los factores que se relacionan con el uso de canales formales e informales de búsqueda de empleo en Neiva. Metodología: para lograrlo, se estimó un modelo econométrico de variable dependiente limitada Probit, teniendo en cuenta características demográficas, laborales y socioeconómicas que puedan incidir en la elección del medio de búsqueda de empleo. Resultados: dentro de los principales resultados se destaca que, a mayores niveles educativos, mayor es la probabilidad de acceder a un empleo a través de un canal de búsqueda formal, así mismo, a mayores estratos socioeconómicos, menor es la probabilidad de encontrar empleo a través de canales formales. Conclusión: los individuos con condiciones socioeconómicas más favorables, generalmente hacen parte de redes de contactos más amplias, que les permiten acceder al mercado laboral de manera más fácil, a través de los canales informales de búsqueda de empleo.
... These seem to be true in China: users of information ties enjoy an average advantage of 40.1% ([℮ .337 2 1] 3 100%) than non-guanxi users. On the other hand, in-group favoritism dictates that relatives and close friends expect preferential treatments to each other (Taylor & Doria, 1981), and therefore employers not only accept referrals of old-boy networks (Rees, 1966) but also try to impress them by offering the new hires a higher entry-level wage (Simon & Warner, 1992). In the Chinese context, wage offers are oftentimes flexible, especially in the growing non-state sector, thus creating a social space in which guanxi ties influence hiring decisions. ...
... For instance, individuals' position in their network structure can provide invaluable resources and may be a source of status for individuals (Burt, 1982;Freeman, 1978;Podolny & Baron, 1997). Further, individuals' network position can yield additional workrelevant benefits such as obtaining advice or job leads and referrals (McDonald & Westphal, 2003;Rees, 1966). In all, ample scholarship suggests that social networks, structurally and functionally, provide individuals with resources and social support that can lead to a slew of positive outcomes, including career advancements, enhanced creativity, and wellbeing (Brass, 1995;Burt, 2004;Granovetter, 1973;Marsden & Campbell, 1990;Perry-Smith, 2006;Zhu, Woo, Porter, & Brzezinski, 2013). ...
... 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. ...
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.
... In a survey of residents of a Massachusetts town, Granovetter (1973Granovetter ( , 1995 found that over 50% of the available jobs are obtained through social contacts. Early work by Rees (1966), also in the context of the United States, found that the figure reached over 60%. ...
... 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. ...
... Employee referrals-programs where companies take into account recommendations by current or former employees when filling job openings-have been suggested as one such mechanism through which employers can ensure better social and economic outcomes (e.g., Granovetter, 1985Granovetter, , 1995Rees, 1966;Fernandez and Moore, 2000). Empirically it has been shown that workers that are part of the same social network may monitor and help each other more effectively (Kugler, 2003;Castilla, 2005;Heath, 2018). ...
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.
... 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). ...
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.
... 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). ...
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.
Youth face various choices regarding their activity status, such as early entry into the labour force, pursuing further education or being Not in Education, Employment or Training (NEET), as well as early marriage for women. This study analyses the role of social networks and their gender differential on these three activity status choices of Indian youth (15–29 years) in 2011 to 2012 using IHDS-II data. The study uses two types of social network variables: (a) the number of ties with any or all persons in a medical profession, teacher and government servant, and is similar to the degree centrality measure in the social network literature, and (b) the nature of ties, which measures the intensity of connection with these people categorised them as strong, arising from same family or caste, weak or none. Estimates from the multinomial logit model show that having more ties increases the odds of choosing education over an early entry into the labour force. On the nature of ties, we find that having access to strong ties increases the odds of being either in education or NEET over an early entry into the labour force for males. For females, strong ties favour education or NEET over employment, while other types of ties favour employment and reduce their odds of being either in education or in NEET. The information on social network types available in the data set is limited, in particular the absence of peer networks, to carry out a richer analysis. Nevertheless, this study contributes both towards the social network literature and assessing the determinants of youth activity status for the first time in India.
JEL Codes : I23, J16, J24, J64, N30, P36
Research in several advanced economies has found that the descendants of immigrants tend to experience persistent difficulties in entering the labour market. This article tests whether social capital contributes to the disadvantage of descendants of immigrants in the school-to-work transition when compared to their native-background peers in Sweden. The study uses the CILS4EU survey, which provides information on friendship ties measured at age 15 and labour market outcomes at age 19. This allows for an analysis of networks formed before labour market entrance, an extensive control setup, and a comparison of measures of outgoing, incoming, and reciprocated friendship ties. The results show that the descendants of immigrants have access to less social capital measured as employed friends, but that they are as likely as natives to use their contacts to obtain a job. The returns to social capital are similar in terms of unemployment risk, but descendants of immigrants have a lower payoff when it comes to earnings. The study concludes that social capital contributes to, but is not the main driver of their labour market disadvantage in the school-to-work transition.
Tanto ocupados como desempleados buscan, principalmente, empleo por los canales informales de búsqueda de empleo. Su elección concuerda con que estas estrategias de exploración sean las más eficientes por relacionarse con menores duraciones del desempleo, y las más efectivas en términos de permitir a un participante del mercado laboral encontrar empleo. Con información de la GEIH para el área metropolitana de Cali, en los segundos trimestres de 2009 y 2010, se encuentra, además, que los canales formales de búsqueda de empleo son menos eficientes que los informales, pero más que los informales moderados.
Auf dem Ausbildungsmarkt wird es für Betriebe zunehmend eng. Die Anzahl ausbildungssuchender Jugendlicher ist seit Jahren rückläufig, was es für mehr und mehr Betriebe zu einer Herausforderung werden lässt, die angebotenen Ausbildungsplätze zu besetzen. Das wirft die Frage auf, wie Betriebe vorgehen, um Ausbildungsplatzbewerber/-innen für sich zu gewinnen. Zur Beantwortung dieser Frage nimmt der vorliegende BIBB Report die von Betrieben genutzten Rekrutierungswege in den Blick. Es zeigt sich, dass sowohl die Anzahl als auch die Art genutzter Rekrutierungswege damit zusammenhängen, ob Betriebe viele Bewerbungen erhalten und alle Ausbildungsplätze besetzen können.
Ülkeler kalkınma süreçlerini sürekli kılmak ve rekabet güçlerini artırmak için beşerî sermayelerinin niteliğini artırmaya özel önem vermektedir. Bu amaca yönelik en etkin enstrüman eğitimdir. Bu nedenle ülkeler eğitim sistemlerinde evrenselleşmeyi sağlamak için, yani tüm vatandaşlarının eğitime katılımını sağlamak için devasa bütçeler kullanmaktadır. Bu süreç eğitimde kitleselleşmeye yol açmış ve okuldan-işe sorunsuz geçiş sağlayabilmek için eğitim sistemi ve işgücü piyasasında yapılması gerekenler sıcak tartışma gündemine taşınmıştır. Bu kapsamdaki tartışmalarda okuldan-işe geçişteki sorunların çoğunlukla eğitim sistemindeki eksikliklerle ilişkilendirildiği görülmektedir. Ancak bu eğilim okuldan-işe geçişte toplumlarda görünmez sosyal ağların ve işe alımdaki gerçek dinamiklerin çoğunu göz ardı etmektedir. Bu nedenle bu çalışmada istihdam dinamiklerinin anlaşılmasında öncü rol oynayan ve halen geçerliliğini koruyan Granovetter ağ modeline dayalı olarak istihdam edilebilirlik ele alınmaktadır. Granovetter modeli ve zayıf bağların önemi, Granovetter modelinin yeni ağ modelleri ile ilişkisi ve Granovetter modelinde Matta etkisi irdelenmektedir. Ayrıca, okuldan işe geçişte bu model bilgisine göre hareket etmenin beşerî sermaye kadar önemli olduğu vurgulanmaktadır.
Religious communities are important providers of social insurance. We show that risk associated with oil dependence facilitated the proliferation of religious communities throughout the U.S. South during the twentieth century. Known oil abundance predicts higher rates of church membership, which are not driven by selective migration or local economic development. Consistent with a social insurance channel, greater oil price volatility increases effects, while greater access to credit, state-level social insurance, and private insurance crowd out effects. Religious communities limit spillovers of oil price shocks across sectors, reducing increases in unemployment following a negative shock by about 30 percent.
I build on Bandiera et al. (Quarter. J. Econ. 120(3):917–962, 2005) and propose a novel mechanism whereby the structure of social network within an organization matters for its efficiency. The ability of each agent is private information, but adjacent agents in the network can observe each other’s ability. Under relative performance evaluation, the effect of adding links among agents on the effort level is ambiguous, and is determined by the second- (complementarity) and third-order (“risk” attitude) cross-partial derivatives of the compensation function. If the second- and third-order cross-partial derivatives of the compensation function satisfy certain conditions, any network structure can maximize the output given that compensation scheme.
Why is the world not moving fast enough to solve the climate crisis? Politics stand in the way, but experts hope that green investments, compensation, and retraining could unlock the impasse. However, these measures often lack credibility. Not only do communities fear these policies could be reversed, but they have seen promises broken before. Uncertain Futures proposes solutions to make more credible promises that build support for the energy transition. It examines the perspectives of workers, communities, and companies, arguing that the climate impasse is best understood by viewing the problem from the ground up. Featuring voices on the front lines such as a commissioner in Carbon County deciding whether to welcome wind, executives at energy companies searching for solutions, mayors and unions in Minnesota battling for local jobs, and fairgoers in coal country navigating their uncertain future, this book contends that making economic transitions work means making promises credible.
This study analyzes the interplay between the segregation level, education cost, and the evolution of group inequality. In a market economy, individuals have incentives to invest in skill acquisition because of wage differentials. Because skill achievement is costly, a person with a higher inherent ability or a better community background is more likely to invest. Bowles, Loury, and Sethi (2014) show the possibility of group inequality evolution with a high level of segregation when network externalities over the skill acquisition period affect an individual’s decision of skill achievement. This study emphasizes the effect of education costs on the evolution of group inequality. Even when the level of segregation is high, if the societal education cost of skill acquisition is not sufficiently large, group skill disparity may not evolve. Observing that education costs vary significantly across countries depending on the structure of their educational institutions, this theoretical analysis suggests that some countries may suffer more from between-group disparity than others because their education systems impose higher costs on individuals.
Human capital is a major impetus for technological innovation. We examine the relation between the technological dimension of product market competition and the disclosure of skill requirements in job postings. On the one hand, technological competition may raise the urgency of recruiting tech talent and make firms provide more specific skill requirements. On the other hand, technological competition can increase the proprietary costs of skill requirement disclosure. Using technological peer pressure as a measure of technological competition, we find that firms facing intense technological competition provide more specific skill requirements for tech positions, suggesting that the disclosure benefits outweigh the proprietary costs when firms face pressure to innovate. The effect of technological peer pressure is more pronounced among firms that make only incremental innovations and less pronounced among firms that rely on trade secrets or have greater industry peer presence in close geographical proximity. Our study documents a distinct relationship between technological competition and voluntary disclosure targeted to labor market participants.
Albert Rees played a critical role in both the profession of economics and US government economic policy. One of the first scholars to gather large-scale labour market data sets, he also designed and ran a pathbreaking early randomised control trial (RCT) of a public policy, introducing the technique of RCTs into the social sciences. Rees served in leadership roles at the University of Chicago and Princeton University as well as in philanthropy and, several times, in various administrative and advisory roles in the US government.
A career search is a long process which requires effort. It can take months before you can find a job that suits your unique needs almost everyone is well aware of the fact that finding a job in Afghanistan is difficult and requires an iron shoe. For recruitment any candidate is required to go for interviews with different companies, it doesn't matter if you've just graduated from a reputable university or have decided to enter the job market after finishing high school, finding a job with the right income and conditions is a challenge. Finding a job is difficult for many job seekers because they choose the toughest way to find a job. There are generally different ways to look for a job that anyone can choose from depending on their abilities. Traditionally, job-search approaches have been broken down into' formal' and' informal' approaches. Formal approaches such as jobs agency services or reacting to advertising published in magazines, journals, newspaper and, more recently, the Internet. The use of personal contacts is one of the informal job-search techniques most studied.in this survey In order to meet the objective; both quantitative as well as qualitative research technique has been used. On the other hand both secondary as well as primary data used for this research paper. For primary data collection, a semi- structured questionnaire designed to collect the information. Books, articles, journals and database are used as secondary sources. Therefor the outcome of this research will help to understand more about employee job search opinion of on various job search methods in Afghanistan.
This paper examines the links between labour market tightness, hiring difficulties and search effort of recruiters using Dares’ (Direction de l’animation de la recherche, des études et des statistiques) Offre d’emploi et recrutement (Ofer) 2016 survey. We build a typology according to the tightness intensity, the anticipated recruitment difficulties, the competition from other employers and the available job seekers, allowing us to identify five classes of occupations. Two of them associate high tightness and anticipated difficulties. With this typology, we study the hiring difficulties mentioned ex post by employers and their recruiting efforts. Hiring in a tight occupation is not always harder but more often results in a lack of image or applications. Concerning the relationships between tightness and recruiting efforts, recruiting in tight occupations does not imply the use of more search channels but a higher number of elements required from candidates and more individual interviews with them.
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.
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.
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.
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?
Using a representative sample of Chinese urban employees, we empirically study the impact of the utilization of informal job search through social networks on wage. We find a premium of initial wage associated with job referral, but the wage premium diminishes over tenure. We also find that the effect of job referral on initial wage reduces when human capital plays a more important role, or the recruitment process and the economic system are more market-oriented. Our findings are consistent with the learning theory that job referral can reduce information asymmetry between employees and employers at the beginning they meet, but the informational advantage diminishes over time as the employers know non-referred workers gradually.
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