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College Networks and Re-employment of Displaced Workers

Ben Ost, Weixiang Pan and Douglas Webber

No 2023-043, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We provide the first evidence on the role of college networks in the re-employment of displaced workers. An extensive literature examines the consequences of layoffs, but the factors which facilitate re-employment are relatively under-studied. Using administrative data and a cross-cohort design, we find that network connections with actively-hiring employers increase the re-employment rate. This result is driven by re-employment at contact’s firms suggesting that a stronger network does not improve worker quality more broadly. These results suggest that college has the potential to improve employment outcomes beyond improved human capital and signaling.

Pages: 50 pages
Date: 2023-06
New Economics Papers: this item is included in nep-net and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:96645

DOI: 10.17016/FEDS.2023.043

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