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Social Capital and Wages: An Econometric Evaluation of Social Networking's Effects
Author(s) -
Delattre Eric,
Sabatier Mareva
Publication year - 2007
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.2007.00372.x
Subject(s) - economics , wage , selection (genetic algorithm) , social capital , selection bias , social network (sociolinguistics) , econometric model , econometrics , labour economics , capital (architecture) , microeconomics , computer science , statistics , social science , sociology , history , mathematics , archaeology , artificial intelligence , world wide web , social media
. The goal of this paper is to get an econometric evaluation of the effects of the social network's mobilization, as a job search strategy, on wages. We make use of switching regression models to deal simultaneously with an endogenous selection issue in the network's choice and the existence of two different regimes of wage determination. Econometric estimates provide evidence for the existence of a selection effect on the choice of network but, after correcting the selection bias on the wage equations, the effect of social network on wages is negative.