How Do Social Networks Affect Labor Markets
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How Do Social Networks Affect Labor Markets?
Author | : Ian Schmutte |
Publisher | : |
Total Pages | : |
Release | : 2016 |
Genre | : |
ISBN | : |
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Social networks, or "job-referral" networks, can help make labor markets become more efficient. Outside the firm, they help workers obtain employment after displacement and secure higher-paying jobs. They can also match highly-skilled workers to more productive employment. Inside the firm, referrals facilitate employment relationships that are more stable, productive, and profitable. In aggregate, referral networks help "grease the wheels" of a labor market that can be beset by a range of information problems. However, such networks can also be segmented along racial, ethnic, and socio-economic lines, which brings into question the effect they may have on inequality between and within different groups of workers.
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