Munich Personal RePEc Archive

Network social capital and labour market outcomes Evidence from Ireland

Brady, Gerard (2013): Network social capital and labour market outcomes Evidence from Ireland.

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Abstract

Using data from the International Social Survey Programme 2008 this paper tests empirically the effects of network social capital on Irish employment outcomes, while controlling for possible endogeneity. We allow the effects of social networks to vary for different groups and across different localities. We also test the hypothesis that network social capital works as a complement to human capital in the labour market, rather than as a substitute. We find that social participation and employment are not endogenous and that ‘weak ties’ matter for employment outcomes, whereas ‘strong ties’ are less important. The effects, however, vary across age and location. We also find that social and human capital may be substitutes rather than complements when it comes to the labour market. These findings are discussed with relevance and examples for policy.

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