Job Referral Networks and the Determination of Earnings in Local Labor Markets
Author | : Ian M. Schmutte |
Publisher | : |
Total Pages | : 44 |
Release | : 2014 |
ISBN-10 | : OCLC:1308960498 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Job Referral Networks and the Determination of Earnings in Local Labor Markets written by Ian M. Schmutte and published by . This book was released on 2014 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite their documented importance in the labor market, little is known about how workers use social networks to find jobs and their resulting effect on earnings. I use geographically detailed U.S. employer-employee data to infer the role of social networks in connecting workers to jobs in high-paying firms. To identify social interactions in job search, I exploit variation in social network quality within small neighborhoods. Workers are more likely to change jobs, and more likely to move to a higher-paying firm, when their neighbors are employed in high-paying firms. Furthermore, local referral networks help match high-ability workers to high-paying firms.