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Turbulent Networks: Social Capital, Employer Hiring Preferences and Labor Market Outcomes

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Abstract:

Empirical evidence shows that many workers search for jobs through their networks, and that employers often prefer to hire through referrals. As a result, many have expected that who use their social networks will enjoy a labor market advantage over those who do not. However, as Mouw has documented, this pattern is not consistently observed empirically (Mouw 2003). In this paper we argue that networks might play a role in producing or buffering against various types of occupational instability (career turbulence) through the mechanisms of information and influence. Our results suggest that the perplexing lack of empirical support for the social network advantage is explained in part by differences in the local and global structure of networks and by variation in the strategies and preferences of employers. Using an agent-based simulation, we show that broader networks reduce the frequency of turbulent events in careers, and that dense networks can trap workers into unstable cycles of job holding. However, these results can be both amplified and attenuated by characteristics of global network structure of the network, and by employers’ preferences for hiring through referral. We discuss the implications of these findings and make specific suggestions for important areas of future empirical research.

Most Common Document Word Stems:

job (173), network (153), worker (138), social (73), referr (63), employ (62), inform (62), prefer (59), labor (57), market (54), cluster (50), tie (48), structur (48), unemploy (48), simul (42), local (41), inequ (41), individu (40), degre (38), level (38), high (36),

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Social Capital, Social Networks, Agent-Based Model
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Name: American Sociological Association
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MLA Citation:

Fountain, Christine. and Stovel, Katherine. "Turbulent Networks: Social Capital, Employer Hiring Preferences and Labor Market Outcomes" Paper presented at the annual meeting of the American Sociological Association, Marriott Hotel, Loews Philadelphia Hotel, Philadelphia, PA, Aug 12, 2005 <Not Available>. 2008-12-12 <http://www.allacademic.com/meta/p22800_index.html>

APA Citation:

Fountain, C. and Stovel, K. , 2005-08-12 "Turbulent Networks: Social Capital, Employer Hiring Preferences and Labor Market Outcomes" Paper presented at the annual meeting of the American Sociological Association, Marriott Hotel, Loews Philadelphia Hotel, Philadelphia, PA Online <APPLICATION/PDF>. 2008-12-12 from http://www.allacademic.com/meta/p22800_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Empirical evidence shows that many workers search for jobs through their networks, and that employers often prefer to hire through referrals. As a result, many have expected that who use their social networks will enjoy a labor market advantage over those who do not. However, as Mouw has documented, this pattern is not consistently observed empirically (Mouw 2003). In this paper we argue that networks might play a role in producing or buffering against various types of occupational instability (career turbulence) through the mechanisms of information and influence. Our results suggest that the perplexing lack of empirical support for the social network advantage is explained in part by differences in the local and global structure of networks and by variation in the strategies and preferences of employers. Using an agent-based simulation, we show that broader networks reduce the frequency of turbulent events in careers, and that dense networks can trap workers into unstable cycles of job holding. However, these results can be both amplified and attenuated by characteristics of global network structure of the network, and by employers’ preferences for hiring through referral. We discuss the implications of these findings and make specific suggestions for important areas of future empirical research.

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Document Type: application/pdf
Page count: 26
Word count: 9752
Text sample:
Turbulent Networks: Social Capital Employer Hiring Preferences and Labor Market Outcomes Christine Fountain Katherine Stovel Department of Sociology University of Washington This research is supported by a Seed Grant from the Center for Statistics and the Social Sciences at the University of Washington and by the National Science Foundation (SES-0351834 Stovel PI). Direct correspondence to Christine Fountain Department of Sociology University of Washington Box 353340 Seattle WA 98195 or cmf@u.washington.edu. ABSTRACT Empirical evidence shows that many workers search for
58(6):1475-1480. Sørensen Aagbe B. and Arne L. Kalleberg. 1981. “An Outline of a Theory of the Matching of Persons to Jobs.” In: I Berg ed. Sociological Perspectives on Labor Markets. New York: Academic Press. Stovel Katherine & Christine Fountain. 2003. Hearing about a Job: A Model of Differential Information Flow and Job Matching. Center for Statistics in the Social Sciences Working Paper No. 30. Seattle: University of Washington. Watts DJ. 1999a. Small Worlds: The Dynamics of Networks Between Order


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