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Social Networks and Unemployment Exit in Great Britain

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Abstract

Purpose
The purpose of this paper is to examine the effect employed friends have on the probability of exiting unemployment of an unemployed worker according to his/her educational (skill) level.

Design/methodology/approach
In common with studies on unemployment duration, this paper uses a discrete-time hazard model.

Findings
The paper finds that the conditional probability of finding work is between 24 and 34 per cent higher per period for each additional employed friend for job seekers with intermediate skills.

Social implications
These results are of interest since they suggest that the reach of national employment agencies could extend beyond individuals in direct contact with first-line employment support bureaus.

Originality/value
Because of the lack of appropriate longitudinal information, the majority of empirical studies in the area assess the influence of social networks on employment status using proxy measures of social interactions. The current study contributes to the very limited empirical literature of the influence of social networks on job attainment using direct measures of social structures.

Acceptance Date Mar 6, 2018
Publication Date Aug 13, 2018
Publicly Available Date Mar 28, 2024
Journal International Journal of Social Economics
Print ISSN 0306-8293
Publisher Emerald
Pages 1205 -1226
DOI https://doi.org/10.1108/IJSE-04-2017-0137
Keywords Social networks, Job search, Friends, Unemployment exit
Publisher URL http://doi.org/10.1108/IJSE-04-2017-0137

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