Wage Dynamics and Peer Referrals

Vincent Boucher and Marion Goussé

Review of Economic Dynamics, 2019, vol. 31, 1-23

Abstract: We present a flexible model of wage dynamics where information about job openings is transmitted through social networks. We show that the individuals' wages dynamic is positively associated across time and that this result holds outside the stationary distribution, and under observed and unobserved heterogeneity. We present an empirical application using the British Household Panel Survey by exploiting direct information about individual's social networks. We find that having more employed friends leads to more job offers, but to slightly lower offered wages. We also find that non-relative friends are more helpful than relatives, and that individuals benefit relatively more from their male friends. (Copyright: Elsevier)

Keywords: Labour market; peer referals; social networks (search for similar items in EconPapers)
JEL-codes: C33 J31 J46 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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DOI: 10.1016/j.red.2018.12.001

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