Job Recruitment Networks and Migration to Cities in India
从雇主需求角度解释发展中国家招聘网络盛行的原因,发现网络使用与技能要求负相关、与经济活跃度正相关、与劳动保护法规负相关,并用印度全国就业调查数据验证了这些关系。
Abstract Economists have focused on job search and supply-side explanations for network effects in labour transactions. This paper develops and tests an alternative explanation for the high prevalence of network-based labour market entry in developing countries. In our theoretical framework, employers use employee networks as screening and incentive mechanisms to improve the quality of recruitment. Our framework suggests a negative relationship between network use and the skill intensity of jobs, a positive association between economic activity and network use and a negative relationship between network use and pro-labour legislation. Furthermore, social identity effects are expected to intensify when compared to information-sharing and other network mechanisms. Using data from an all-India Employment Survey, we implement a novel empirical strategy to test these relationships and find support for our demand-side explanation.