This paper incorporates social networks into a frictional labour market framework. There are two worker types and two occupations. Both occupations are subject to correlated business cycle fluctuations in labour demand. The equilibrium in this model is characterized by occupational mismatch...

We study the effect of finding a job through one's social contact on starting wages. Using combined SOEP-INKAR data for Germany and propensity score analysis - both matching and weighting - we document that referral hiring is associated with a wage penalty of 10%. This penalty is stable over...

In this study we evaluate the effects of low-skilled immigration on small businesses, wages and employment in Germany. We develop a search and matching model with heterogeneous workers, cross-skill matching, and endogenous entry into entrepreneurship. The model is calibrated using German...

We study the effect of finding a job through one's social contact on starting wages. Using combined SOEP-INKAR data for Germany and propensity score analysis - both matching and weighting - we document that referral hiring is associated with a wage penalty of 10%. This penalty is stable over...

We develop a theoretical labour market model with two generations of workers, endogenous social networks of parents and binary schooling choices of children. Since the market skill premium is unobservable, families rely on noisy wage information obtained from their social contacts giving rise to...

"This volume addresses pertinent questions related to cross-border labor migration and puts forward a "labor market" perspective that goes beyond the national frame of reference prevailing in most of the extant labor market scholarship. In four sections, the volume pulls together a number of key...