TY - RPRT AU - Bramoullé, Yann AU - Saint-Paul, Gilles TI - Social Networks and Labor Market Transitions PY - 2004/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 1215 UR - https://www.iza.org/index.php/publications/dp1215 AB - We study the influence of social networks on labor market transitions. We develop the first model where social ties and job status coevolve through time. Our key assumption is that the probability of formation of a new tie is greater between two employed individuals than between an employed and an unemployed individual. We show that this assumption generates negative duration dependence of exit rates from unemployment. Our model has a number of novel testable implications. For instance, we show that a higher connectivity among unemployed individuals reduces duration dependence and that exit rates depend positively on the duration of the last job held by the unemployed worker. KW - social capital KW - social networks KW - unemployment duration KW - economic inbreeding KW - labor market transitions ER -