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

Abstract

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

Boucher, Vincent and Gousse, Marion, Wage Dynamics and Peer Referrals (December 1, 2016). CRREP Working Paper 2016-08, Available at SSRN: https://ssrn.com/abstract=2611356 or http://dx.doi.org/10.2139/ssrn.2611356

Vincent Boucher (Contact Author)

Université Laval ( email )

2214 Pavillon J-A. DeSeve
Quebec, Quebec G1K 7P4
Canada

Marion Gousse

Université Laval ( email )

2214 Pavillon J-A. DeSeve
Quebec, Quebec G1K 7P4
Canada

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