Andrea Mario Lavezzi - Nicola Meccheri
On Job Contact Networks and Labor Market Mobility

Abstract: In this paper we adopt the probabilistic framework of Calvo-Armengol and Jackson (2004), in which social networks facilitate the transmission of information on job vacancies among workers, in order to study the effects of social connections on mobility in labor markets. Furthermore, we assume that probabilities to access information on job vacancies can change according to individuals' employment status. This also aims at capturing firms' different recruitment strategies. We find that social connections and networks topology can play an important role in explaining labor market mobility. At the same time, we also show that results may strongly depend on different hypotheses concerning individuals' access to information about job opportunities (or firms' recruitment strategies).

JEL: D85, J60, J64.
Keywords: social networks, wage mobility, wage inequality, unemployment, mobility matrices.



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