Many workers believe that personal contacts are crucial for obtaining jobs in high-wage sectors. On the other hand … than formal methods (e.g., newspaper ads). In equilibrium, the matching process generates segmentation in the labour market … because of heterogeneity in the size of referral networks. Referrals match ‘good’ high-paying jobs to well-connected workers …

We study the influence of social networks on labour market transitions. We develop the first model where social ties … between two employed individuals than between an employed and an unemployed individual. We show that this assumption generates … negative duration dependence of exit rates from unemployment. Our model has a number of novel testable implications. For …

This Paper provides a simple matching model in which unemployed workers and employers can be matched together through … of different job search methods, conditional unemployment benefit hikes can improve welfare when individuals are risk …

state where all best friends are unemployed. But a weak tie can help leaving unemployment in any state because that person … stuck in poverty traps having little contact with weak ties (whites) that can help them escape unemployment. …

likely to be unemployed, there is then little chance of escaping unemployment. It is therefore the separation in both the …The aim of this paper is to provide a new mechanism based on social interactions explaining why distance to jobs can … far away from jobs tend to have less connections to weak ties. Because of the lack of good public transportation in the US …

We develop a model where information about jobs is essentially obtained through friends and relatives, i.e. strong and … increase with the level of social interactions in the city because information about jobs is transmitted more rapidly and, as a … incorporate black and white workers. Because whites obtain a higher wage than blacks, they reside closer to jobs to save on …