Job contact networks and the ethnic minorities

This paper examines the job finding methods of different ethnic groups in the UK. The theoretical framework shows that less assimilated ethnic unemployed workers are more likely to use their friends and family as their main method of search but they have less chance of finding a job using this method compared to whites and more assimilated ethnic unemployed workers that use formal job search methods (adverts, employment agencies etc.). Using data from the UK Quarterly Labour Force Survey (QLFS), we test these hypotheses. Our empirical findings are consistent with the theory since they suggest that, though networks are a popular method of finding a job for the ethnic minorities, they are not necessarily the most effective either in terms of gaining employment or in terms of the level of job achieved. However, there are important differences across ethnic groups with the Pakistani and Bangladeshi groups and those born outside the UK (the least assimilated), losing out disproportionately from using personal networks

ENDOGENOUS JOB CONTACT NETWORKS

We develop a model where workers, anticipating the risk of becoming unemployed, invest in connections in order to access information about available jobs that other workers may have. The investment in connections is high when the job separation rate in the labor market is moderate, whereas it is low for either low or high levels of job separation rate. The equilibrium response of network investment to changes in the labor market conditions generates novel empirical predictions. In particular, the probability that a worker finds a new job via his connections increases in the separation rate when the separation rate is low, whereas it decreases when the separation rate is high. These predictions are supported by the empirical patterns that we document for the U.K. labor market

Job Contact Networks and the Ethnic Minorities

Using data from the UK Quarterly Labour Force Survey, this paper examines the job finding methods of different ethnic groups in the UK. Our empirical findings suggest that, though personal networks are a popular method of finding a job for the ethnic minorities, the foreign born and those who identify themselves as non-British, they are not necessarily the most effective either in terms of gaining employment or in terms of the level of job achieved. However, there are some important differences across ethnic groups with some groups losing out disproportionately from using personal networks.Job search; networks; social capital; ethnic disadvantage

Missing Links: Referrer Behavior and Job Segregation

The importance of networks in labor markets is well-known, and their job segregating effects in organizations taken as granted. Conventional wisdom attributes this segregation to the homophilous nature of contact networks, and leaves little role for organizational influences. But employee referrals are necessarily initiated within a firm by employee referrers subject to organizational policies. We build theory regarding the role of referrers in the segregating effects of network recruitment. Using mathematical and computational models, we investigate how empirically-documented referrer behaviors affect job segregation. We show that referrer behaviors can segregate jobs beyond the effects of homophilous network recruitment. Further, and contrary to past understandings, we show that referrer behaviors can also mitigate most if not all of the segregating effects of network recruitment. Although largely neglected in previous labor market network scholarship, referrers are the missing links revealing opportunities for organizations to influence the effects of network recruitment

A Social Network Analysis of Occupational Segregation

We develop a social network model of occupational segregation between different social groups, generated by the existence of positive inbreeding bias among individuals from the same group. If network referrals are important for job search, then expected homophily in the contact network structure induces different career choices for individuals from different social groups. This further translates into stable occupational segregation equilibria in the labor market. We derive the conditions for wage and unemployment inequality in the segregation equilibria and characterize first and second best social welfare optima. Surprisingly, we find that socially optimal policies involve segregation.Social Networks, Homophily, Inbreeding Bias, Occupational Segregation, Labor Market Inequality, Social Welfare

A Social Network Analysis of Occupational Segregation

We develop a social network model of occupational segregation between different social groups, generated by the existence of positive inbreeding bias among individuals from the same group. If network referrals are important in getting a job, then expected inbreeding bias in the contact network structure induces different career choices for individuals from different social groups. This further translates into stable occupational segregation equilibria in the labour market. We derive the conditions for persistent wage and unemployment inequality in the segregation equilibria. Our framework is proposed as complementary to existing theories used to explain labour market inequalities between groups divided by race, ethnicity or genderSocial Networks; Inbreeding Bias; Occupational Segregation; Labour Market Inequality

Assessing the role of social networks on migrant labor market outcomes: evidence from a representative immigrant survey

What role do social networks play in determining migrant labor market outcomes? We examine this question using data from a random sample of 1500 immigrants living in Ireland. We propose a theoretical model formally predicting that immigrants with more contacts have additional access to job offers, and are therefore better able to become employed and choose higher paid jobs. Our empirical analysis confirms these findings, while focusing more generally on the relationship between migrants’ social networks and a variety of labor market outcomes (namely wages, employment, occupational choice and job security), contrary to the literature. We find evidence that having one more contact in the network is associated with an increase of 11pp in the probability of being employed and with an increase of about 100 euros in the average salary. However, our data is not suggestive of a network size effect on occupational choice and job security. Our findings are robust to sample selection and other endogeneity concerns

Assessing the role of social networks on migrant labor market outcomes: evidence from a representative immigrant survey

What role do social networks play in determining migrant labor market outcomes? We examine this question using data from a random sample of 1500 immigrants living in Ireland. We propose a theoretical model formally predicting that immigrants with more contacts have additional access to job offers, and are therefore better able to become employed and choose higher paid jobs. Our empirical analysis confirms these findings, while focusing more generally on the relationship between migrants’ social networks and a variety of labor market outcomes (namely wages, employment, occupational choice and job security), contrary to the literature. We find evidence that having one more contact in the network is associated with an increase of 11pp in the probability of being employed and with an increase of about 100 euros in the average salary. However, our data is not suggestive of a network size effect on occupational choice and job security. Our findings are robust to sample selection and other endogeneity concerns

A Social Network Analysis of Occupational Segregation

We develop a network model of occupational segregation between social groups divided along gender or racial dimensions, generated by the existence of positive assortative matching among individuals from the same group. If referrals are important for job search, then expected homophily in the structure of job contact networks induces different career choices for individuals from different social groups. This further translates into stable occupational segregation equilibria in the labor market. We derive conditions for wage and unemployment inequality in the segregation equilibria and characterize both the first and the second best social welfare optima. We find that utilitarian socially optimal policies always involve segregation, but that integration policies are justifiable by additional distributional concerns. Our analysis suggests that social interaction through homophilous job referral networks is an important channel for the propagation and persistence of gender and racial inequalities in the labour market, complementary to classical theories such as taste or statistical discrimination

The importance of online exposure when applying for a job

The rapid growth and development of information and communication technologies enabled the transition to a global and dynamic communication model. Among the many communication tools that have emerged, online social networks have proven to be the most popular. Its success has to do with the ability to converge several features into a single space, allowing users to share knowledge and experiences, maintain contact with their peers, as well as communicate freely and spontaneously. However, using these virtual platforms we are, inevitably, creating an online history that can affect our personal and professional lives. Facing a difficult and competitive job market, companies seek to capture the best talents, within their list of job candidates. In this context, companies are starting to screen online profiles to validate candidates’ personal characteristics in a non-professional environment. The main purpose of this study is to understand the importance of the activities in online social networks when applying for a job, especially among recent graduates, who are seeking their first professional experience. Results show that even though recent graduates take caution when using social networking sites, especially Facebook, online exposure is not considered an important factor when undergoing employment processes.info:eu-repo/semantics/publishedVersio