Wage dynamics and peer referrals
We present a flexible model of wage dynamics where information about job openings is transmitted through social networks. We show that the individuals' wages dynamic is positively associated across time and that this result holds outside the stationary distribution, and under observed and unobserved heterogeneity. We present an empirical application using the British Household Panel Survey by exploiting direct information about individual's social networks. We find that having more employed friends leads to more job offers, but to slightly lower offered wages. We also find that non-relative friends are more helpful than relatives, and that individuals benefit relatively more from their male friends.
Review of Economic Dynamics
Volume and page numbers
31 , 1 -23
University of Essex, Albert Sloman Library Periodicals *restricted to University of Essex registered users* - http://serlib0.essex.ac.uk/record=b1650564~S5