We investigate the influence of social networks on employment. Using data from India, we estimate the effect of caste
based social networks on employment. We use a methodology that allows us to control for several omitted variable
biases that often confound network effect. Our results indicate that caste based social networks are important
determinant of employment in India. The implication of our findings is that a policy of positive discrimination in labour
market for disadvantaged caste is able to generate additional benefit through network channels.
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