Jean-Philippe Berrou

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Thursday, 4 October 2018

Séminaire GREThA-Bordeaux Développement

Jean-Philippe Berrou

jeudi 4 octobre
16h -17h15
salle F340 GREThA

"Potential and activated networks in the job search and matching processes: Evidence from the Colombian labor market"

Abstract :
This article examines the effect of social network configurations on labour market outcomes. Drawing from the socioeconomic literature on social networks and employment, we note large discussions and contrasted results between potential and active network approaches on labour market, and we offer three contributions in this debate. First, we propose a multidimensional definition of relational embeddedness, combining potential network dimensions (reachability, extensity and diversity of social positions) and active network dimensions (structure, homophily, strength of ties). Second, using a representative sample of 1600 workers in Bogota, coming from original ego-centred data recollected between 2016 and 2017, we observe four types of networks describing workers’ relational forms. Third, we use a quasi-experimental model (IPWRA estimator) to measure the impact of each network category on labor market performances (income, satisfaction, income rising and job search time). We find evidence that combination between extended (potential) and cohesive (active) networks produce a better matching than others. Moreover, the combination between extended potential and opened active networks don’t have significant effects. Our results show that combinations between potential and active networks matter in Bogota, and mixing extended (potential) and cohesive (active) dimensions are crucial to improve labour market outcomes.