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Social Networks and Labour Market Outcomes

The Non-Monetary Benefits of Social Capital

Bibliographic Data

ID2235211
AuthorsA Franzen (0000-0001-6660-8607, corresponding author)
Year2006
Volume22
Issue4
Pages353-368
Publication date2006-04-28
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEuropean Sociological Review (JOURNAL)
Journal identifiersISSN: 0266-7215 • E-ISSN: 1468-2672
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1093/esr/jcl001
OpenAlexW2121733156
LanguageEN
Citations received85
References cited16

Getting a Job: A Study of Contacts and Careers. University of Chicago Press) that social networks help individuals to find better-paid jobs with a new model, which predicts that networks are helpful with respect to non-pecuniary job characteristics but not concerning the monetary pay-offs. Following Montgomery (Montgomery, J. D. (1992) American Sociological Review, 57, 586-596), our model is a combination of classical job-search theory and the network hypothesis. First, concerning the monetary consequences, we test our hypotheses empirically by analysing the 2001 International Social Survey Programme on social relations and support systems. We show that using social ties is a common job-search strategy in all countries. However, using social networks does not increase the monetary pay-off. Second, we use a sample of 8,000 Swiss university graduates who recently entered the labour market to show that informal job-search channels are beneficial with respect to important non-monetary job characteristics. Thus, graduates who received their jobs through social contacts tended to get jobs that are linked to their educational degree and offer better career perspectives. Furthermore, using personal networks is related to lower search costs. Therefore, the results suggest overall that networks improve the non-pecuniary characteristics but not the monetary pay-offs.

Demographic economics · Economics · Labour economics · Political science · Social capital · Social media · Social mobility · Social network (sociolinguistics) · Social reproduction · Social science · Sociology · Labor market dynamics and wage inequality · Social Capital and Networks · Urban, Neighborhood, and Segregation Studies

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Unique citing works85
Citations per year4,47
Citation span2007 - 2025 (19)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 76

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