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Krug, G., Rebien, M. (2011). Job search via social networks : An analysis of monetary and non-monetary returns for low-skilled unemployed. IAB Discussion Paper 201123.

Using a search theoretical model, we analyse the effects of the information flow via social networks (friends, relatives and other personal contacts) by comparing monetary and non-monetary outcomes in obtaining jobs via networks versus formal methods. Propensity-score matching on survey data from the low-skilled unemployed is used to identify causal effects. The analysis takes into account unobserved heterogeneity by applying Rosenbaum bounds. Because of the potential ambiguity when comparing outcomes in accepted jobs, we also examine the effectiveness of job searches using social networks as a source of information compared to not using networks. We find no evidence for causal effects on monetary outcomes and, at best, only weak evidence for effects on non-monetary job outcomes.


Rebien, Martina

Martina Rebien investigates the effects of 1-euro jobs from firms perspective, and the way in which firms have been affected by the Hartz IV reforms. Beyond that, she evaluates the relevance of social networks concerning staffing processes. She is working with the German Vacancy Survey....

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