A dynamic model of weak and strong ties in the labor market

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Abstract

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 rely more on their weak ties to find a job. The model is extended so unemployed workers can also learn of a vacancy directly froman employer. Results show that equilibrium employment and time spent with weak ties are sometimes, but not in all cases, positively related.
Original languageEnglish
Pages (from-to)891-932
Number of pages42
JournalJournal of Labor Economics
Volume33
Issue number4
DOIs
Publication statusPublished - Oct 2015
Externally publishedYes

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