2015

A Dynamic Model of Weak and Strong Ties in the Labor Market

Reprint No. 2015:53

Author(s): Yves ZenouYear: 2015 Title: Journal of Labor Economics Volume (No.): 33 (4) Pages: 891–932
Online article (restrictions may apply)


The study develops a simple model where workers can obtain a job through either their strong or weak ties. It shows that increasing the time spent with weak ties raises the employment rate of workers. It also shows that when the job-destruction rate or the jobinformation rate increases, workers choose to relymore on their weak ties to find a job. The model is extended so unemployed workers can also learn of a vacancy directly froman employer. Results show that equilibrium employment and time spent with weak ties are sometimes, but not in all cases, positively related.


Reference:
Zenou, Yves (2015), "A Dynamic Model of Weak and Strong Ties in the Labor Market". Journal of Labor Economics 33(4), 891–932.

Interdisciplinary European Studies

The European Union in a Changing World Order

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This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

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