ECM - École Centrale de Marseille : UMR7316 (Pôle de l'étoile - Technopole de Château-Gombert - 38 rue Frédéric Joliot-Curie - 13013 Marseille - France)
UA - Université d'Angers : EA7456 (Université d'Angers - 40 Rue de Rennes, BP 73532 - 49035 Angers CEDEX 01 - France)
AGROCAMPUS OUEST (Institut Supérieur des Sciences Agronomiques, Agroalimentaires, Horticoles et du Paysage - 65, rue de St Brieuc - CS 84215 - 35042 Rennes cedex - France)
Abstract : 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.
https://hal-amu.archives-ouvertes.fr/hal-02944389 Contributor : Elisabeth LhuillierConnect in order to contact the contributor Submitted on : Monday, February 8, 2021 - 6:19:31 PM Last modification on : Friday, May 13, 2022 - 3:03:59 PM Long-term archiving on: : Sunday, May 9, 2021 - 8:28:46 PM
Eva Moreno Galbis, Francois-Charles Wolff, Arnaud Herault. How helpful are social networks in finding a job along the economic cycle? Evidence from immigrants in France. Economic Modelling, Elsevier, 2020, 91, pp.12-32. ⟨10.1016/j.econmod.2020.05.017⟩. ⟨hal-02944389⟩