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The impact of social networks on labour market outcomes: new evidence from cape breton

Khan, Adnan Q. and Lehrer, Steven F. (2013) The impact of social networks on labour market outcomes: new evidence from cape breton. Canadian Public Policy, 39 (s1). S1-S24. ISSN 0317-0861

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Identification Number: 10.3138/CPP.39.Supplement1.Si

Abstract

Debates centered on the role of social networks as a determinant of labour market outcomes have a long history in economics and sociology; however, determining causality remains a challenge. In this study we use information on random assignment to a unique intervention to identify the impact of changes in the size of alternative social network measures on subsequent employment at both the individual and community levels. Our results indicate that being assigned to the treatment protocol significantly increased the size of social networks, particularly weak ties. Nevertheless, these increases do not translate into improved employment outcomes 18 months following study completion. We do not find any evidence of treatment effect heterogeneity based on the initial size of one's social network; rather those whose strong ties increased at a higher rate during the experiment were significantly less likely to hold a job following the experiment. We find that many of these results also hold at the community level among those who did not directly participate in the intervention. In summary, our results suggest that policies can successfully influence the size of an individual's social network, but that these increases have a limited impact on long-run labour market outcomes, with the notable exception of changes in the composition of individuals who hold jobs.

Item Type: Article
Official URL: http://economics.ca/cpp/en/
Additional Information: © 2013 University of Toronto Press
Divisions: STICERD
Subjects: H Social Sciences > HT Communities. Classes. Races
Sets: Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Date Deposited: 19 Jun 2013 11:58
Last Modified: 19 Nov 2019 11:06
URI: http://eprints.lse.ac.uk/id/eprint/50792

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