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Do Job Market Networks Help Recovery from Mass Layoffs?

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  • Judith K. Hellerstein
  • Mark J. Kutzbach
  • David Neumark

Abstract

Labor market networks are informal connections among neighbors, coworkers, family, and friends that help people find jobs through sharing information about job openings or applicants. These networks appear to play a valuable role in helping workers recover after mass layoffs. Among relatively low-skilled workers who lost their jobs in mass layoffs, those living in neighborhoods with stronger labor market connections among neighbors found new jobs more quickly. Moreover, workers who found jobs through network connections also found better positions that paid more and lasted longer.

Suggested Citation

  • Judith K. Hellerstein & Mark J. Kutzbach & David Neumark, 2018. "Do Job Market Networks Help Recovery from Mass Layoffs?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfel:00156
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    References listed on IDEAS

    as
    1. Patrick Bayer & Stephen L. Ross & Giorgio Topa, 2008. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 1150-1196, December.
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