Jason Greenberg, New York University

What’s the Value of Social Capital? A Within-Person Job Offer and Choice Test
Jason Greenberg, Stern School of Business, New York University

Description

Semester: 
Winter 2015
Lecture Time: 
Friday, January 16, 2015 - 1:30pm to 3:00pm
Lecture Location: 

Room R1240, Ross School of Business

Abstract

Whether and how social capital derived through social ties creates value has animated substantial research in sociology, economics, and political science. Sociologists are generally inclined to believe that social ties have a causal impact on labor market outcomes—that is, it is “who you know” that counts to some degree. However, the evidence informing this belief is often inconsistent and circumstantial, thus requiring an indirect approach to inference. In this research we propose and test a model that addresses the limitations of prior research by leveraging unique data on contemporaneous job search with detailed information about job search channels and offer characteristics in alternative-specific job attributes and choice models. Contrary to conventional wisdom, we find that search through social networks typically results in job offers with lower total compensation (e.g., -18.0% for those derived through referrals from family and friends v. formal recruiting, -15.4% for those derived via alumni referrals). However, offers derived through alumni contacts (weak bridging ties) are more likely to be accepted because they are perceived as having better growth prospects.

Recording & Additional Notes