Social Contacts at Labor Market Entry and Match Quality

Research has shown that contacts are a commonly used channel to enter the labor market. In Sweden, more than 70 percent of high school students have jobs prior to graduation, and these jobs can provide important contacts with potential employers. From the employer’s perspective, summer jobs can convey information about the quality of potential candidates, which can reduce uncertainty in the hiring decision. The purpose of this project was to study the importance of contacts from summer jobs for labor market entry and whether this channel can reduce frictions during job search and thus lead to better matching.