Occupational mismatch and social networks

Does Whom You Know Matter? Unraveling the Influence of Peers' Network Attributes on Academic Performance

“…Social environment not only affects labor market outcomes but is also an important determinant of human capital accumulation and productivity. The importance of social networks in mitigating information imperfections inherent in labor markets is well documented (see, e.g., Granovetter , Horvath , Gee, Jones, and Burke ). Complementing this, prior research finds that peers have significant influence on productivity in academic and workplace settings through mechanisms such as learning, specialization, and competition.…”

Social contacts and referrals in a labor market with on-the-job search

“…This has a negative effect on wages, since the worker would lose his/her productivity advantage by changing the sector. Horvath (2013) extends this result by parameterizing the level of homophily in the society. It is then possible to show that there exists a critical homophily value, such that if the homophily is sufficiently large (small), the presence of social networks decreases (increases) the mismatch compared to a pure market economy.…”

The economic effect of immigration policies: analyzing and simulating the U.S. case

“…The latter implies any economic and policy factor that increases the value of searching for a job in country 1 relative to country 2 or the value of being employed in country 1 on a temporary visa encourages immigration and translates to larger equilibrium numbers of legal and illegal immigrants in country 1. Third, we see from expressions (17)- (19), the importance of immigrant networks in determining the size of immigrant stocks. The share of legal (permanent) immigrants in total foreign population ( L P X ) affects the probability of entry through family unification positively, thus has a positive impact on legal immigration, while it affects the number of illegal immigrants negatively.…”

“…Recently, the labor literature has recognized the role of referrals in hiring and its implication for labor markets (e.g. Calvo-Armengol and Zenou, 2005, Fontaine, 2008, Galenianos, 2013, Horvath, 2014. We are the first to explicitly incorporate the "referral" channel of hiring in the immigration literature.…”

“…8 Apparently, due to the network dependence of legal immigration pathways, the steady-state numbers of legal immigrants, given in equations (17)-(19) depend on the share of permanent immigrants L P X . By adding up (17)- (19) we can get the steady-state condition that determines L P X . That condition is quadratic with two roots.…”