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Citation Information

Type Report
Title Job Search Through Weak and Strong Ties: Theory and Evidence from Indonesia
Publication (Day/Month/Year) 2017
URL http://www.econ.boun.edu.tr/content/wp/EC2013_06.pdf
This paper analyzes workers who may search for jobs using di§erent social contacts. We study a dynamic general equilibrium model where jobs are matched through either strong ties (family and friends) or weak ties, such as an ethnic group. We test the model using data from the Indonesian Family Life Survey. We show that workers are more likely to search through their strong ties when the ethnic network in their city is either very small or very large. Workers who Önd their job through their strong ties of family and friends earn about 10 percent lower wages.

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