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A Dynamic Model of Weak and Strong Ties in the Labor Market
Stockholm University, Faculty of Social Sciences, Department of Economics. IFN, Germany; GAINS, Germany.
Number of Authors: 1
2015 (English)In: Journal Labor Economics, ISSN 0734-306X, E-ISSN 1537-5307, Vol. 33, no 4, 891-932 p.Article in journal (Refereed) Published
Abstract [en]

The study develops a simple model where workers can obtain a job through either their strong or weak ties. It shows that increasing the time spent with weak ties raises the employment rate of workers. It also shows that when the job-destruction rate or the job-information rate increases, workers choose to relymore on their weak ties to find a job. The model is extended so unemployed workers can also learn of a vacancy directly from an employer. Results show that equilibrium employment and time spent with weak ties are sometimes, but not in all cases, positively related.

Place, publisher, year, edition, pages
2015. Vol. 33, no 4, 891-932 p.
National Category
Economics and Business
URN: urn:nbn:se:su:diva-122309DOI: 10.1086/681098ISI: 000361672300005OAI: diva2:876536
Available from: 2015-12-04 Created: 2015-10-29 Last updated: 2015-12-04Bibliographically approved

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Zenou, Yves
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