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We propose a random network model incorporating heterogeneity of agents and a continuous notion of homophily. Unlike … the vast majority of the corresponding economic literature, we capture homophily in terms of similarity rather than … homophily levels. As a possible application we provide a stylized labor market model, where a firm can hire a worker via the …
Persistent link: https://www.econbiz.de/10010379888
Persistent link: https://www.econbiz.de/10012129606
This Paper provides a simple matching model in which unemployed workers and employers can be matched together through social networks and through more efficient, but also more costly, methods. In this framework, decentralized decisions to utilize social networks in the job search process can be...
Persistent link: https://www.econbiz.de/10005792237
Many workers believe that personal contacts are crucial for obtaining jobs in high-wage sectors. On the other hand, firms in high-wage sectors report using employee referrals because they help provide screening and monitoring of new employees. This Paper develops a matching model that can...
Persistent link: https://www.econbiz.de/10005124260
The recent literature explains the theoretical implications of the matching of workers to jobs through social networks. These insights are obtained for extremely simplified economies or rely on unrealistically simple social networks. Therefore, it is difficult to obtain a sense for the...
Persistent link: https://www.econbiz.de/10009132759
This paper provides a simple matching model in which unemployed workers and employers can be matched together through social networks or through more ?formal? methods of search. We show that, in some case, networks substitute for labor market and that this crowding-out effect may be socially...
Persistent link: https://www.econbiz.de/10005560133
As part of a more general process of employment reallocation from less to more productive employers, jobto- job flows tend to be beneficial for productivity and for workers. Thus, when this rate slows, it is important to understand why. In the US, for example, the job-to-job flow rate is now at...
Persistent link: https://www.econbiz.de/10011433268
This paper explores the effects of labour market conditions at graduation on an individual’s work-life over the following decade. Australians graduating into a state and year with a 5 percentage point higher youth unemployment rate can expect to earn roughly 8 per cent less in their first year...
Persistent link: https://www.econbiz.de/10012630134
We analyze a general search model with on-the-job search and sorting of heterogeneous workers into heterogeneous jobs. This model yields a simple relationship between (i) the unemployment rate, (ii) the value of non-market time, and (iii) the max-mean wage differential. The latter measure of...
Persistent link: https://www.econbiz.de/10008854483
We develop a framework where mismatch between vacancies and job seekers across sectors translates into higher unemployment by lowering the aggregate job-finding rate. We use this framework to measure the contribution of mismatch to the recent rise in U.S. unemployment by exploiting two sources...
Persistent link: https://www.econbiz.de/10011119819