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a unique value of network homophily maximizing the present value of income. Therefore, there is a gain for risk …-neutral workers if their network is diversified between the two occupations. The reason for diversification is that the present value … income as in standard portfolio theory which is driving the decision of workers. Nevertheless, the optimal diversification …
Persistent link: https://www.econbiz.de/10011373259
professional homophily in the link formation. Our model predicts that immigrant workers face stronger risk of unemployment and …
Persistent link: https://www.econbiz.de/10012007171
professional homophily in the link formation. Our model predicts that immigrant workers face stronger risk of unemployment and …
Persistent link: https://www.econbiz.de/10012009893
This paper develops a labour market matching model with heterogeneous firms, on-thejob search and referrals. Social capital is endogenous, so that better connected workers bargain higher wages for a given level of productivity. This is a positive effect of referrals on reservation wages. At the...
Persistent link: https://www.econbiz.de/10010340568
This paper develops a search model with heterogeneous workers and social networks. High ability workers are more productive and have a larger number of professional contacts. Firms have a choice between a high cost vacancy in the regular labour market and a low cost job opening in the referral...
Persistent link: https://www.econbiz.de/10010202193
Using a multi-dimensional measure of occupational mismatch, we report distinct gender differences in match quality and changes in match quality over the course of careers. A substantial portion of the gender wage gap stems from match quality differences among more educated individuals....
Persistent link: https://www.econbiz.de/10011931469
Persistent link: https://www.econbiz.de/10009724344
Empirical studies of labor markets show that social contacts are an important source of job-related information [Ioannides and Loury (2004)]. At the same time, wage differences among workers may be explained only in part by differences in individual background characteristics. Such findings...
Persistent link: https://www.econbiz.de/10011348716
In this study we develop and calibrate a search and matching model of the German labour market and analyze the impact of recent immigration. Our model has two production sectors (manufacturing and services), two skill groups and two ethnic groups of workers (natives and immigrants). Moreover, we...
Persistent link: https://www.econbiz.de/10011541119
Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional answer in the theoretical literature is that insider power has no influence on employment, provided that the newly hired employees (entrants) receive their reservation wages....
Persistent link: https://www.econbiz.de/10011411604