Do workers really benefit from their social networks ?

This paper provides a simple matching model in which unemployed workers and employers can be matched together trough social network or trough more formal methods of search. We show that this crowding-out effect may be socially costly. For that reason, a policy increasing the social capital of the disadvantaged workers can increase the unemployment rate and decrease worker’s output.

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Year of publication:	2008-03-01
Authors:	FONTAINE, François
Institutions:	Institut de Recherche Économique et Sociale (IRES), École des Sciences Économiques de Louvain
Subject:	economic policy \| matching \| social networks \| unemployment

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Extent:	application/pdf
Series:	Discussion Papers (REL - Recherches Economiques de Louvain).
Type of publication:	Book / Working Paper
Notes:	The text is part of a series UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Sciences Economiques Number 2008011 2 pages long
Classification:	E24 - Employment; Unemployment; Wages ; J64 - Unemployment: Models, Duration, Incidence, and Job Search ; J68 - Public Policy ; Z13 - Social Norms and Social Capital
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008505525