Galeotti, Andrea and Merlino, Luca Paolo (2014) ENDOGENOUS JOB CONTACT NETWORKS. International Economic Review, 55 (4). pp. 1201-1226. DOI https://doi.org/10.1111/iere.12087
Galeotti, Andrea and Merlino, Luca Paolo (2014) ENDOGENOUS JOB CONTACT NETWORKS. International Economic Review, 55 (4). pp. 1201-1226. DOI https://doi.org/10.1111/iere.12087
Galeotti, Andrea and Merlino, Luca Paolo (2014) ENDOGENOUS JOB CONTACT NETWORKS. International Economic Review, 55 (4). pp. 1201-1226. DOI https://doi.org/10.1111/iere.12087
Abstract
We develop a model where workers, anticipating the risk of becoming unemployed, invest in connections in order to access information about available jobs that other workers may have. The investment in connections is high when the job separation rate in the labor market is moderate, whereas it is low for either low or high levels of job separation rate. The equilibrium response of network investment to changes in the labor market conditions generates novel empirical predictions. In particular, the probability that a worker finds a new job via his connections increases in the separation rate when the separation rate is low, whereas it decreases when the separation rate is high. These predictions are supported by the empirical patterns that we document for the U.K. labor market.
Item Type: | Article |
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Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 09 Jan 2015 10:31 |
Last Modified: | 30 Oct 2024 19:55 |
URI: | http://repository.essex.ac.uk/id/eprint/12222 |
Available files
Filename: GaleottiandMerlino_Revision3_reviewed.pdf