Job search channels, neighborhood effects, and wages inequality in developing countries: the Colombian case

This paper analyzes the relationship between social networks and the probability of finding a job. We explore geographic closeness as the social interaction to explain the job search function. Using data from Colombia in 2009, we calculate how neighborhoods have an effect on the channel used to find...

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Main Authors: Nicodemo, C, Adolfo Garcia, G
Format: Journal article
Language:English
Published: Wiley 2015
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author Nicodemo, C
Adolfo Garcia, G
author_facet Nicodemo, C
Adolfo Garcia, G
author_sort Nicodemo, C
collection OXFORD
description This paper analyzes the relationship between social networks and the probability of finding a job. We explore geographic closeness as the social interaction to explain the job search function. Using data from Colombia in 2009, we calculate how neighborhoods have an effect on the channel used to find a job (social network versus no social network). In addition, we study how wage premium relates to using a social network in finding a job, exploring the inequality that can arise using a different job search method. Our results show that neighborhood affects the individual's job search method and that referred workers earn less at the bottom of the wage distribution with respect to non-referred workers. Colombia presents persistent high levels of informality and inequality with the existence of spatial clusters that impose important social and economic costs with strong informational asymmetries on the job market.
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spelling oxford-uuid:df582a58-e29e-42cf-9d94-80cfb125cdc82025-02-13T16:26:41ZJob search channels, neighborhood effects, and wages inequality in developing countries: the Colombian caseJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:df582a58-e29e-42cf-9d94-80cfb125cdc8EnglishSymplectic Elements at OxfordWiley2015Nicodemo, CAdolfo Garcia, GThis paper analyzes the relationship between social networks and the probability of finding a job. We explore geographic closeness as the social interaction to explain the job search function. Using data from Colombia in 2009, we calculate how neighborhoods have an effect on the channel used to find a job (social network versus no social network). In addition, we study how wage premium relates to using a social network in finding a job, exploring the inequality that can arise using a different job search method. Our results show that neighborhood affects the individual's job search method and that referred workers earn less at the bottom of the wage distribution with respect to non-referred workers. Colombia presents persistent high levels of informality and inequality with the existence of spatial clusters that impose important social and economic costs with strong informational asymmetries on the job market.
spellingShingle Nicodemo, C
Adolfo Garcia, G
Job search channels, neighborhood effects, and wages inequality in developing countries: the Colombian case
title Job search channels, neighborhood effects, and wages inequality in developing countries: the Colombian case
title_full Job search channels, neighborhood effects, and wages inequality in developing countries: the Colombian case
title_fullStr Job search channels, neighborhood effects, and wages inequality in developing countries: the Colombian case
title_full_unstemmed Job search channels, neighborhood effects, and wages inequality in developing countries: the Colombian case
title_short Job search channels, neighborhood effects, and wages inequality in developing countries: the Colombian case
title_sort job search channels neighborhood effects and wages inequality in developing countries the colombian case
work_keys_str_mv AT nicodemoc jobsearchchannelsneighborhoodeffectsandwagesinequalityindevelopingcountriesthecolombiancase
AT adolfogarciag jobsearchchannelsneighborhoodeffectsandwagesinequalityindevelopingcountriesthecolombiancase