In this paper we highlight a specific mechanism through which social networks help in job search. We characterize the strength of a network by its likelihood of providing a job offer. Using a theoretical model we show that the wage differential in jobs found using networks versus those found...

Estimates on the effect of job contact method - i.e., informal versus formal search - on wage offers vary considerably across studies, with some of them finding a positive correlation between getting help from informal connections and obtaining high-paying jobs, while others finding a negative...

The paper studies how social connections affect firm-level hiring decisions and performance. We characterize the social connections of firms' employees using register data and for causal identification we use job displacements, which create directed positive shocks towards connected firms by...

The literature on social networks often presumes that job search through (strong) social ties leads to increased inequality by providing privileged individuals with access to more attractive labor market opportunities. We assess this presumption in the context of sorting between AKM-style person...

The use of social networks and personal referrals in the labor market is very widespread. Both firms and workers may find it beneficial to use these informal channels to produce successful matches between job seekers and vacancies. This Chapter discusses the existing literature and highlights...