Social networks, job search methods and reservation wages: evidence for Germany

Abstract

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The IZA evaluation dataset survey: a scientific use file

“…For instance, Caliendo et al (2011b) investigate the role of social networks on job search behavior, finding that individuals with larger social networks more commonly use informal search channels and also tend to have higher reservation wages. Moreover, Caliendo and Uhlendorff (2011) discuss how personality traits and (similar to the Inverse u-shaped relationship between happiness of job seekers and re-employment probability and wages.…”

Coworker networks in the labour market

“…Topa, 2001, Weinberg et al, 2004, Bayer et al, 2008, Schmutte, 2010, Hellerstein et al, 2011, Damm, 2012, individuals with the same (ethnic) origin (e.g. Munshi, 2003, Edin et al, 2003, Dustmann et al, 2011, Beaman, 2012, close friends (Cappellari and Tatsiramos, 2010), family members (Kramarz and Skans, 2011), freshmen 3 Recent examples of such studies are Weber and Mahringer (2008) for Austria, Goel and Lang (2010) for Canada, Caliendo et al (2011) for Germany, Frijters et al (2005) for the UK, Kugler (2003), Loury (2006), and Brown et al (2012) for the US, Pellizzari (2010) for a selection of European countries, and Bentolila et al (2010) for both the US and Europe. For a comprehensive summary of the literature on the use of referrals in the labour market, see Ioannides and Loury (2004) and Topa (2011). hallmates (Marmaros and Sacerdote, 2002), and fellow war veterans (Laschever, 2009).…”

Job satisfaction as a unified mechanism for agent behaviour in a labour market with referral hiring

“…Some of the persons that enter the model in the same period are interconnected, forming an initial social network of, e.g., secondary school or university friends 7 . They also have friendship ties with those persons already in the labour market (irrespective of whether they are employed or not), forming a mature social network.…”

“…Estimates based on US data show that it is around 1.5 times larger for the tertiaryeducated than for the secondary-educated. Assuming that the 7 Friends in the broad sense, meaning both close friends and acquaintances 8 In short, the Duplication model proceeds in two-step iterations. At the first step, a new vertex is added to the graph and connected randomly with an existing vertex.…”

“…Studies show that between 30 and 50 per cent of individuals found their new jobs through friends and relatives [5], [6], and individuals with access to larger social networks use informal job search channels more often [7]. Moreover, social support from co-workers and managers, along with other factors, is an important component of job satisfaction [8]- [12].…”