Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure

Simon, Curtis J.; Warner, John T.

doi:10.1086/298289

Cited by 342 publications

(307 citation statements)

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“…Bentolila et al, 2010). The degree of mismatch depends on the degree of homophily, which is the 1 Studies in which networks transmit information about the productivity of workers through referrals to current employers, or can inform workers and firms about the quality of the match, include Saloner (1985), Montgomery (1991), Simon and Warner 1992, Mortensen and Vishwanath, 1994, and more recently, Brown et al (2012, Dustmann et al (2011) andGalenianos (2014). Referrals can also mitigate moral hazard problems through co-worker monitoring, allowing firms to pay lower efficiency wages (Kugler, 2003;Dhillon et al, 2013). tendency of individuals to befriend others who are similar to themselves.…”

Section: Theoretical Framework and Related Literaturementioning

confidence: 99%

“…2 Previous empirical research on network effects in the labor market is based either on survey information on the use of informal search methods, such as friends and relatives, or on administrative records in which networks are defined indirectly using observable proxies, such as neighborhood, firm, or ethnicity. Studies on the use of informal search methods include Simon and Warner (1992), Pistaferri (1999), Marmaros and Sacerdote (2002), Loury (2006), Bentolila et al (2010) and Pellizzari (2010). 3 Studies defining networks indirectly using proxies include Topa (2001), Weinberg et al (2004), Bayer et al (2008), Hellerstein et al (2011) and Schmutte (2015), who use geographic proximity at the neighborhood level; Cingano and Rosolia (2012), who define networks at the firm level; Edin et al (2003), Munshi (2003) and Beaman (2012), who define networks based on immigrants' ethnic origin; and Dustmann et al (2011), who use information on both firms and ethnicity.…”

Section: Theoretical Framework and Related Literaturementioning

confidence: 99%

“…Some studies find positive network effects on wages (e.g. Simon and Warner, 1992;Marmaros and Sacerdote, 2002;Loury, 2006), while others find negative effects (e.g. Pistaferri, 1999;Bentolila et al, 2010).…”

Section: Match Qualitymentioning

confidence: 99%

“…For example, Simon and Warner (1992) find that hiring through contacts for a sample of high-qualified workers leads to a higher initial wage, while Kramarz and Nordström Skans (2014) find that school graduates of lower ability are more likely to work in the firm in which their father is employed, but with a wage penalty. Overall, these results help reconcile the mixed evidence of the previous literature on searching through social contacts and wages, indicating 22 Table A5 reports the estimates of the distribution of unobserved heterogeneity.…”

Section: Wages -Heterogeneity By Skill Level and Type Of Relationshipmentioning

confidence: 99%

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With a little help from my friends? Quality of social networks, job finding and job match quality

Cappellari

Tatsiramos

2015

European Economic Review

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This paper studies the effect of network quality on job finding and job match quality using longitudinal data and a direct measure of network quality, which is based on the employment of friendship ties. Various identification strategies provide robust evidence that a higher number of employed contacts increases the job finding rate. Network quality also increases wages for highskilled workers forming networks with non-familial contacts. Instead, for low-skilled workers, more employed familial contacts lead to a negative but not significant effect on wages. These findings reconcile previous mixed evidence of network effects on wages, indicating heterogeneity by skill level and relationship type.

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Section: Theoretical Framework and Related Literaturementioning

confidence: 99%

Section: Theoretical Framework and Related Literaturementioning

confidence: 99%

Section: Match Qualitymentioning

confidence: 99%

Section: Wages -Heterogeneity By Skill Level and Type Of Relationshipmentioning

confidence: 99%

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With a little help from my friends? Quality of social networks, job finding and job match quality

Cappellari

Tatsiramos

2015

European Economic Review

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“…However, the empirical link between social networks and wage dispersion is ambiguous. For instance, Holzer (1987), Simon and Warner (1992) and Petersen et al (2000) find that employees who get their job through social networks have higher earnings , while Hurbelt and Mardsen (1988), find little impact of job finding method on wages. Kugler (2003), using the NLSY, shows that the wage premia for referred workers becomes insignificant once sector of employment is controlled for.…”

Section: Introductionmentioning

confidence: 99%

Why are similar workers paid differently? the role of social networks

Fontaine

2008

Journal of Economic Dynamics and Control

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. We provide a matching model where identical workers are embedded in ex-ante identical social networks. Job arrival rate is endogenous and wages are bargained. We study the evolution of networks over time and characterize the equilibrium distribution of unemployment rates across networks. We emphasize that wage dispersion arises endogenously as the consequence of the dynamics of networks, firms' strategies and wage bargaining. Moreover, contrary to a generally accepted idea, social networks do not necessary induce stickiness in unemployment dynamics. Our endogenous matching technology shows that the effects of networks on the dynamics mostly hinge on search externalities. Our endogenous framework allows us to quantify these effects.JEL Classification: E24, J64, J68

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Examining burnout in the US military with a focus on US Air Force: A review of literature

Archer

Alagaraja

2021

New Horiz Adult Ed & HR Dev

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Through a systematic review of the literature, we draw attention to factors associated with burnout and the effects on the military with a special focus on the US Air Force. Our review consists of the military and human resource development (HRD) literature on burnout. We integrate insights from the review of both literature on burnout and develop a conceptual model based on four major themes. First, significant factors associated with burnout such as the occupational nature of work were identified. The second and third themes describe the effects of burnout on the individual (health and reduced professional efficacy) and organization (commitment, job performance, and increased turnover). Fourth, strategies for minimizing burnout suggest that leadership support is important for service members. Specifically, a climate of support through open communication, realistic resiliency training, and expanding opportunities for career growth are likely to mitigate burnout. We utilize military and HRD perspectives on burnout and present implications for theory and research, as well as recommendations, for improving practice in military settings.

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Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure

Cited by 342 publications

References 7 publications

With a little help from my friends? Quality of social networks, job finding and job match quality

With a little help from my friends? Quality of social networks, job finding and job match quality

Why are similar workers paid differently? the role of social networks

Examining burnout in the US military with a focus on US Air Force: A review of literature

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