Informal job search through social networks and vacancy creation

Merlino, Luca Paolo

doi:10.1016/j.econlet.2019.03.006

Cited by 10 publications

(7 citation statements)

References 15 publications

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“…Individuals socialize with every other active individual who may provide job information. 1 Similar network formation process with socialization effort choice and random matching has been applied to study social networking in the labor market by Cabrales et al (2011), Galeotti andMerlino (2014), andMerlino (2019).…”

Section: Stage 2: Formation Of Social Networkmentioning

confidence: 99%

The impact of social networking on labor market participation

Horváth

Zhang

2021

Bulletin of Econ Res

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We study the impact of social networks on the workers' labor market participation. We assume that individuals are heterogeneous with respect to the value of home production, which determines who participates in the labor market. Active individuals strategically form social links to obtain job information where the opportunity cost of networking is the value of home production. We find that social networking increases the labor market participation because it raises the probability to find a job. However, the equilibrium level of participation is lower than the socially optimal level. Social networking creates negative externalities, if social policies fix these externalities, the labor market participation rate will increase. Further, we show that when social networking becomes more efficient, the inequality between active individuals increases.

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Section: Stage 2: Formation Of Social Networkmentioning

confidence: 99%

The impact of social networking on labor market participation

Horváth

Zhang

2021

Bulletin of Econ Res

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“…This is consistent with the idea that the gains from marriage with these partners are higher. It would be interesting in future work to endogenize the arrival rate of direct offers, as in Merlino (2019).…”

Section: Two Levels Of Educationmentioning

confidence: 99%

“…In the model, singles meet either through their friends, or directly (e.g., by casual meetings or online dating). Inspired by models of job search via referrals (Galeotti and Merlino, 2014;Merlino, 2014Merlino, , 2019, we assume that all individuals are initially married, but they face a risk of divorce. In order to reduce the probability of remaining single, they can invest in socialization with individuals of the same gender.…”

Section: Introductionmentioning

confidence: 99%

Marriage through friends

Bolletta¹,

Merlino²

2021

Preprint

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In this paper, we propose a model of the marriage market in which individuals meet potential partners either directly or through their friends. When socialization is exogenous, a higher arrival rate of direct meetings also implies more meetings through friends. When individuals decide how much to invest in socialization, meetings through friends are first increasing and then decreasing in the arrival rate of direct offers. Hence, our model can rationalize the negative correlation between the advent of online dating and the decrease of marriages through friends observed in the US over the past decades.

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“…Our paper naturally relates to the literature studying games played on endogenous networks. The first papers in this literature mostly modeled network formation as a generic socialization effort [13][14][15][16] or based on not-fully-strategic decisions [17]. The seminal contribution of [1] provided a framework to study these games.…”

Section: Introductionmentioning

confidence: 99%

The Evolution of Networks and Local Public Good Provision: A Potential Approach

Kinateder

Merlino

2021

Games

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In this paper, we propose a game in which each player decides with whom to establish a costly connection and how much local public good is provided when benefits are shared among neighbors. We show that, when agents are homogeneous, Nash equilibrium networks are nested split graphs. Additionally, we show that the game is a potential game, even when we introduce heterogeneity along several dimensions. Using this result, we introduce stochastic best reply dynamics and show that this admits a unique and stationary steady state distribution expressed in terms of the potential function of the game. Hence, even if the set of Nash equilibria is potentially very large, the long run predictions are sharp.

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Informal job search through social networks and vacancy creation

Cited by 10 publications

References 15 publications

The impact of social networking on labor market participation

The impact of social networking on labor market participation

Marriage through friends

The Evolution of Networks and Local Public Good Provision: A Potential Approach

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