Empirical evidence suggests that networks of personal relations are important in the micro dynamics of labor markets: even in modern capitalistic economies a high share of jobs are filled by social referrals. This paper aims at shedding light on an apparent puzzle concerning the relationship...

The hypothesis underlined in this paper is that apart from infant mortality there is another relevant phenomenon taking place within new-born Small Business Enterprises (SBEs) in the period immediately after entry; namely that the smaller ones among them, having entered with a marked sub-optimal...