Social Network and Wage: Evidence from Cameroon

Using Cameroonian data, this paper investigates the effects of social network on wage. Social network is measured in terms of using friends and relatives while looking for a job. In order to evaluate the effectiveness of social network with regard to wage, we make use of Heckman selection model. Our findings contrast with previous studies. After factoring the endogeneity and sample selection, we find that Job seekers who make use of social network exhibit a wage premium of 1.53 per cent of average wage. We also find that social network contributes to explain wage differential according to gender and institutional sectors (formal versus informal).