Research seminar: The long-term effect of work-related networks on earnings
- Antonio Dalla Zuanna, LSE/NHH
- 6 November 2018
- 11:45 - 12:45
- Auditorium, SSB, Akersveien 26
Antonio Dalla Zuanna, LSE/NHH: https://sites.google.com/site/antoniodallazuanna/
Abstract: Informal networks are an important job search channel. While a growing literature focuses on referred workers within the firm, little is known about the long-term worker-level benefits from job searches conducted with the help of social ties. In this paper, I use Norwegian registry data and focus on displaced workers. I follow these workers with respect to the jobs they find after displacement and show that those who are newly employed where a member of their network is also employed, on average earned higher salaries before displacement, suggesting positive selection. In the years immediately following displacement, the earnings gap favoring workers employed with a member of their network increases, partly due to shorter unemployment spells. However, this gap vanishes completely seven years after displacement. I discuss possible explanations for the decrease in the earnings gap and I describe how this new empirical evidence relates to different theoretical models developed to explain the usage of networks in job search.
- +47 21094703