Publication detail

Strategic Referring in Labor Market Social Networks

Author(s): PhDr. Petr Švarc ,
PhDr. Natálie Švarcová Ph.D.,
Type: Others
Year: 2008
Number: 0
ISSN / ISBN:
Published in: Prague Social Science Studies
Publishing place: Prague
Keywords: agent-based modeling, networks, strategy, job referring
JEL codes:
Suggested Citation:
Grants: IES Research Framework Institutional task (2005-2011) Integration of the Czech economy into European union and its development
Abstract: We present a model of job search in which information about job opportunities is available either through direct search at the labor market or through network of socially tied individuals. We consider two cases - altruistic and self-interested agents that maximize their utility function. We show that optimal strategies range between full and no referring cases. Altruistic individuals tend to refer more than self-interested agents. Strategic referring allows agents alleviate employment variation and leads to higher average utility levels and lower unemployment rates.

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