Social Networks and Labor Market Transitions

38 Pages Posted: 30 Jul 2004

See all articles by Yann Bramoulle

Yann Bramoulle

University of Toulouse I - LEERNA-INRA

Gilles Saint-Paul

University of Toulouse I - GREMAQ-IDEI; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 2004

Abstract

We study the influence of social networks on labor market transitions. We develop the first model where social ties and job status coevolve through time. Our key assumption is that the probability of formation of a new tie is greater between two employed individuals than between an employed and an unemployed individual. We show that this assumption generates negative duration dependence of exit rates from unemployment. Our model has a number of novel testable implications. For instance, we show that a higher connectivity among unemployed individuals reduces duration dependence and that exit rates depend positively on the duration of the last job held by the unemployed worker.

Keywords: social networks, unemployment duration, labor market transitions, social capital, economic inbreeding

JEL Classification: E24, J6, Z13

Suggested Citation

Bramoulle, Yann and Saint-Paul, Gilles, Social Networks and Labor Market Transitions (July 2004). IZA Discussion Paper No. 1215. Available at SSRN: https://ssrn.com/abstract=571049

Yann Bramoulle

University of Toulouse I - LEERNA-INRA ( email )

21, Allee de Brienne
31000 Toulouse
France
33 5 6112 8517 (Phone)
33 5 6112 8520 (Fax)

Gilles Saint-Paul (Contact Author)

University of Toulouse I - GREMAQ-IDEI ( email )

Manufacture des Tabacs
21 Allees de Brienne
Toulouse, 31000
France
+33 5 6112 8544 (Phone)
+33 5 6122 5563 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
171
Abstract Views
1,915
rank
161,495
PlumX Metrics