Scandinavian Working Papers in Economics
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IFAU - Institute for Evaluation of Labour Market and Education Policy Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2013:23:
Networks and youth labor market entry

Lena Hensvik () and Oskar Nordström Skans ()

Abstract: The paper provides an overview of existing knowledge regarding the role played by social networks in the process where young workers are matched to employing firms. We discuss standard theories of why social networks may be an important element in the job-matching process and survey the empirical literature on labor market networks with an emphasis on studies pertaining to the role of social contacts during the school-to-work transition phase. In addition, we present some novel evidence on how contacts established while working during the final year in high school affect youth labor market entry. Finally, we discuss how insights from this literature can be used to improve the quality of social programs targeted towards young workers in the Nordic countries.

Keywords: Referrals; school-to-work transition; youth unemployment; (follow links to similar papers)

JEL-Codes: J24; J64; M51; Z13; (follow links to similar papers)

36 pages, October 14, 2013

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This paper is published as:
Hensvik, Lena and Oskar Nordström Skans, (2014), 'Networks and youth labor market entry', Nordic Economic Policy Review, No. 1, pages 81-117

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