Wage Effects of Recruitment Methods: The Case of the Italian Social Service Sector

This essay analyzes the role of different recruitment channels, and of informal networks in particular, on wage structures across various organization types in the Italian social service sector. While the impact of recruitment methods on wages has been addressed in several previous contributions, none of them focuses on social services. Comparison of outcomes across organization types within the same sector is in itself another novelty, as compared to previous studies that generally focus on differences across sectors or, more recently, across countries. The main findings are that nonprofit organizations prefer informal recruitment methods to better select the most motivated workers, namely those workers who share the nonprofit mission. Furthermore the impact of informal contacts on the wage structure explains much of the unobserved wage differentials across organization type. © 2009 Physica-Verlag Heidelberg

Short Term Gain, Long Term Pain:Informal Job Search Methods and Post-Displacement Outcomes

This paper examines the role of informal job search methods on the labour market outcomes of displaced workers. Informal job search methods could alleviate short-term labour market difficulties of displaced workers by providing information on job opportunities, allowing them to signal their productivity and may mitigate wage losses through better post-displacement job matching. However if displacement results from reductions in demand for specific sectors/skills, the use of informal job search methods may increase the risk of job instability. While informal job search methods are associated with lower wage losses, they lead to increased job instability and increased risk of subsequent job displacement

Race, culture, and skill: Interracial wage differences among African Americans, Latinos, and whites

This paper examines the interrelationships among race, culture, skill, and the distribution of wages. I utilize a three equation system to explore this process: skill is a multidimensional productive attribute measured by years of education and work effort; educational attainment is a function of class background and individual effort; and, individual wage rates are a function of skill and class background. By further assuming that effort is differentially distributed across individuals and social groups, I am able to estimate reduced form equations for educational and earnings attainment, where both equations are functions of the class backgrounds and race of individuals. The collective results of this paper challenge the conventional wisdom among economists that African American and Latino job skills are of a lower quality than white job skills. To the extent that effort is an important element of worker skill, our results suggest that neither African American nor Latino labor is of lower quality than white labor. The results regarding African American - white differences in educational attainment, i.e., African Americans are able to translate a given level of resources into higher levels of educational attainment, reaffirm previous findings in the literature. The results on Latino-white educational attainment differences are novel. Additionally, unlike previous researchers, this paper connects racial differences in the skill acquistion process to the economics of discrimination.

Do Neighbors Help Finding a Job? Social Networks and Labor Market Outcomes after Plant Closures

Social networks may affect workers' labor market outcomes. Using rich spatial data from administrative records, we analyze whether the employment status of neighbors influences the employment probability of a worker who lost his job due to a plant closure and the channels through which this occurs. Our findings suggest that a ten percentage point higher neighborhood employment rate increases the probability of having a job six months after displacement by 0.9 percentage points. The neighborhood effect seems to be driven not by social norms but by information transmission at the neighborhood level, and additionally by networks of former co-workers who also lost their jobs due to plant closure