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effects and (ii) unobserved worker heterogeneity in terms of the inherent cost of maintaining connections within a productive … informal network. The model predicts that a greater degree of unobserved heterogeneity tilts the estimates toward producing a … contact methods and wage offers requires a careful assessment of the unobserved heterogeneity and peer influences in the …
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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...
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