A lthough it is intuitively plausible that a job seeker benefits by using contacts in her job search, the literature is plagued by theoretical disagreements and inconclusive empirical evidence. Single-firm studies consistently find that job seekers applying through referrals achieve better labor-market outcomes than job seekers applying without referrals, but the evidence from job-seeker studies is mixed. To solve this puzzle, we clarify the distinction between having social capital and using contacts as a search method. We present theoretical reasons to suggest that the lack of an association between a job seeker's social capital and whether or not she uses social networks to search for a job should not be taken to imply that job seekers who use social networks to search for jobs do not benefit from using contacts. We exploit a strategic research setting, the school-to-work transition of 291 university graduates who engaged in 3,112 contemporaneous job searches, to show that although a job seeker's social capital may not affect whether or not she uses contacts to search for a job, using contacts as a job-search method does improve her job-search outcomes. We conclude by discussing the implications of our findings for the literature on job search and social networks.

While substantial progress has recently been made in the literature on social networks and employment, this research has not been accompanied by a larger organizing framework. In this article, we attempt to provide such framework while reviewing the literature that addresses the context of work and employment from a social network perspectivethat is, research based on the assumption that actors are embedded in networks of social relations and interactions. In particular, our review focuses on the primary mechanisms that help explain how networks may shape employment outcomes and processes, namely, by conveying resources and providing signals to others. Ties among social actors may transfer better or unique resources such as information, learning, influence, and support, which consequently may affect key employment outcomes. Ties may also provide signals concerning ability, legitimacy/trust, status, and relationship meaning. We conclude by presenting a number of alternative arguments in the literature and discussing future directions for the research on social networks and employment.

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In this second article, we continue to survey research that addresses work and employment from a social network perspective. Building on a companion article in this volume, which explores in-depth the main network mechanisms presented in the literature, this article reviews studies addressing how social networks may shape key employment outcomes for both individuals and organizations. Network access and activation may shape individuals' selection into employment opportunities in addition to a variety of post-hire outcomes including employee performance, promotion, rewards, job satisfaction, and termination. Organizations too may be influenced by their network position and by the activation of certain ties, ultimately affecting key outcomes such as firm performance, innovation, and learning measures. We conclude by discussing promising areas for future research on how social networks interact with employment.

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