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Social Networks and Labor Market Outcomes: Do personal connections always lead to better jobs?

Author

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  • Tamás Bartus

Abstract

This paper adresses the question under which conditions do social networks affect labor market outcomes. Because of imperfect information, personal connections are effective in amtching persons and jobs, thus, besides education, social networks are expected to affect status and income inequalities. Hypotheses which elaborate on the relationship between network characteristics and labor market outcomes, however, do not hold generally. To improve these hypotheses, sociological insights on social networks are linked to search and matching models which explain the retuns to the informal search methods.

Suggested Citation

  • Tamás Bartus, 1998. "Social Networks and Labor Market Outcomes: Do personal connections always lead to better jobs?," Rajk László Szakkollégium Working Papers 2, Rajk László College.
    • Handle: RePEc:rlc:rlszwp:2
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    More about this item

    Keywords

    labor market; social networks;

    JEL classification:

    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
    • J79 - Labor and Demographic Economics - - Labor Discrimination - - - Other

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