Invisible Hand of Social Capital and Multiple Job-search Method

• In Event: 161 - Section on Organizations, Occupation and Work Roundtable Session (one-hour).
  In Refereed Roundtable: Table 06. Social Capital and Networks II

Abstract

This paper uncovers the hidden link between social capital and job attainment by examining the influence of social capital on the use of job-search methods. More specifically, this study aims to show how social capital along with human capital determines individual choice of job-search method. In examining the choice of job-search method, this study takes into accounts multiple choice of job-search method which has been neglected in the previous research. Using the 2005 Social Capital-USA data, this study shows two interesting findings. First, human capital facilitates not only the use of formal job-search method but also the use of informal job-search method. Second, social capital determines the choice between two informal job-search methods. People with smaller social capital are more likely to use social contacts, while those with greater social capital are more likely to receive unsolicited job leads. These findings suggest that the choice of job-search method is not based on individual preference or random selection. Rather, it is a structural process in which social and human capital predominantly matter.

Author

• Hang Young Lee, Duke University