Using your ties to get a worse job? The differential effects of social networks on quality of employment: Evidence from Colombia

Deguilhem, Thibaud and Berrou, Jean-Philippe and Combarnous, François (2017): Using your ties to get a worse job? The differential effects of social networks on quality of employment: Evidence from Colombia.

Abstract

This article examines the effect of social networks through the use of family, friends or relatives ties on quality of employment (QoE). Drawing from the socioeconomic literature on social networks and labor market, we propose an original and multidimensional measure of QoE, and a fruitful estimation approach of the effect of social networks on QoE that allows to deal with complex inter-groups heterogeneity. Using the Great Integrated Houshold Survey (GIHS) and a sample on Bogota's workers in 2013, we find evidence proving that the use of ties has high negative effects on QoE index for those who are in the lower quality of employment range. Likewise, the use of social networks has very low negative effects on QoE index for individuals who are in the better quality of employment range. Complemented by focus groups interviews, these empirical results raise questions about the difference prevailing in relational practices between necessity networks for precarious workers and opportunity networks for protected workers.

• Item Type: MPRA Paper
• Language: English
• Keywords: Social networks, Quality of employment, Finite Mixture Regression Model, Colombia
• Subjects: J - Labor and Demographic Economics > J4 - Particular Labor Markets > J42 - Monopsony ; Segmented Labor Markets; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships ; Contracts and Reputation ; Networks; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification

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