Workers with lower socio-economic status more frequently use social networks to get jobs. This negative self-selection is not well accounted for by existing theories. We present a model that explains why it occurs. When social networks are connected to mismatched occupations, workers with fewer...

This chapter surveys recent literature on social networks and labour markets, with a specific focus on developing countries. It reviews existing research, in particular, on the use of social networks for hiring and the consequences of networks for on-the-job outcomes, including emerging...

We question whether the use of social networks to exit unemployment matters in Cameroon. We develop an empirical model which allows us to address this issue in a convenient way. We propose a methodology based on the well known Heckman (1976) two-step procedure to account for both simultaneity...

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...

In this paper I argue that search theory is a useful addition to the way economists and geographers have approached the study of commuting behavior. This is illustrated by showing that introduction of a spatial element into the standard model of job search leads to the prediction of critical...

We document a new set of facts regarding the impact of referrals on labor market outcomes. Our results highlight the importance of distinguishing between different types of referrals-those from family and friends and those from business contacts-and different occupations. Then we develop an...