Wage Dynamics and Peer Referrals
CRREP Working Paper 2016-08
32 Pages Posted: 29 May 2015 Last revised: 16 Jul 2018
Date Written: December 1, 2016
We present a flexible model of wage dynamics where information about job openings is transmitted through social networks. The model is based on Calvó-Armengol & Jackson (2004, 2007) and extends their results outside the stationary distribution, and under observed and unobserved heterogeneity. We present an empirical application using the British Household Panel Survey by exploiting direct information about individual’s social networks. We find that the distribution of job offers is positively affected by the employment status of an individual’s friends, and that this relationship is stronger for women.
Keywords: Labour Market, Peer Referrals, Social Networks
JEL Classification: C33, J31, J46
Suggested Citation: Suggested Citation