How helpful are social networks in finding a job along the economic cycle? Evidence from immigrants in France
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- handle: 10670/1.xcepvm
- hal: hal-02944389
- doi: 10.1016/j.econmod.2020.05.017
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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.econmod.2020.05.017
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Mots-clés
immigrant network matching rate economic cycle J - Labor and Demographic Economics/J.J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers/J.J6.J61 - Geographic Labor Mobility • Immigrant Workers J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J15 - Economics of Minorities, Races, Indigenous Peoples, and Immigrants • Non-labor Discrimination J - Labor and Demographic Economics/J.J2 - Demand and Supply of Labor/J.J2.J24 - Human Capital • Skills • Occupational Choice • Labor Productivity D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D85 - Network Formation and Analysis: TheorySujets proches
Labor and laboring classes Foreign-born population Foreign population Emigrants Foreigners MigrantsCiter ce document
Eva Moreno Galbis et al., « How helpful are social networks in finding a job along the economic cycle? Evidence from immigrants in France », HAL-SHS : économie et finance, ID : 10.1016/j.econmod.2020.05.017
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Résumé
Around 50% of individuals obtain or hear about jobs through social networks. This hiring trend may become problematic when the labor market is tight and people need less social contacts to find a job. Using a one-period static model where network members may receive job offers directly from the firm or indirectly through employed members in the network we show that the share of new hires finding a job through social connections (ie network matching rate) decreases with the job finding rate. Using French data for the period 2003-2012, we test this prediction with immigrants, a population subgroup for whom networks play a major role in occupational decisions. We propose two network matching rate indicators, one based on direct recommendations and another one internalizing the positive externality on the employment probability induced by peers. We find a decreasing relationship between the network matching rate and the job finding rate. Social connections are less helpful for finding jobs during economic expansions.