Social Interaction and Labour Market Outcomes

Xin, Guangyi (2017): Social Interaction and Labour Market Outcomes.

Abstract

This paper studies the effect of social interaction on employment status and employment quality by using longitudinal data from BHPS (British Household Panel Survey). Active community membership is employed as the measurement of social Interaction. Various identification strategies provide robust evidence that a higher level of social interaction results in increased probability of being full-time employed. The effect of social interaction on employment status is also investigated among different gender groups and at different age stages. Moreover, three indices of social interaction have been constructed to capture the different dimension effect of social interaction on labour market outcome. As a result, active group memberships in professional organisations and sport clubs have the largest effect. Regarding employment quality, social interaction leads to a positive and significant effect on wages. This social interaction effect is also studied among different gender and occupation groups.

• Item Type: MPRA Paper
• Language: English
• Keywords: Social Capital; Social Interaction; Labour Market Outcome
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J21 - Labor Force and Employment, Size, and Structure; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J64 - Unemployment: Models, Duration, Incidence, and Job Search; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships ; Contracts and Reputation ; Networks

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