Skip to content

ISER Working Paper Series 2011-21

Friends’ networks and job finding rates

Authors

Publication date

10 Aug 2011

Abstract

Social interactions have important consequences for labour market outcomes. Yet the growing literature has relied on indirect definitions of networks. We present the first evidence based on direct information on friends’ networks. We address issues of correlated effects with instrumental variables and panel data. We find large network effects, which persist even after controlling for family networks. One additional employed friend increases a person’s job finding probability by approximately 13 percent. This is a result of endogenous social interactions. We also provide the first evidence that network effects operate through information transmission rather than through social norms or leisure complementarities.

Subjects

Labour Market, Unemployment, and Social Behaviour

Paper download  


Related publications

  1. Friends' networks and job finding rates

    Lorenzo Cappellari and Konstantinos Tatsiramos

    1. Labour Market
    2. Unemployment

#520101


Research home

Research home

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest