Social Networks and Labor Markets: How Strong Ties Relate to Job Finding on Facebook’s Social Network

Social networks are important for finding jobs, but which ties are most useful? Granovetter has suggested that “weak ties” are more valuable than “strong ties,” since strong ties have redundant information, while weak ties have new information. Using 6 million Facebook users’ data, we find evidence for the opposite. We proxy for job help by identifying people who eventually work with a pre-existing friend. Using objective tie strength measures and our job help proxy, we find that most people are helped through one of their numerous weak ties but a single stronger tie is significantly more valuable at the margin.

[1]  Sinan Aral,et al.  Identifying Influential and Susceptible Members of Social Networks , 2012, Science.

[2]  P. V. Marsden,et al.  Social Networks, Job Changes, and Recruitment , 2001 .

[3]  Matthew O. Jackson,et al.  An Overview of Social Networks and Economic Applications , 2011 .

[4]  Esteban Moro,et al.  Social Features of Online Networks: The Strength of Intermediary Ties in Online Social Media , 2011, PloS one.

[5]  Giorgio Topa,et al.  Social interactions, local spillovers and unemployment , 2001 .

[6]  Kaivan Munshi Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market , 2003 .

[7]  Ian M. Schmutte Job Referral Networks and the Determination of Earnings in Local Labor Markets , 2013, Journal of Labor Economics.

[8]  C. Manski Identification of Endogenous Social Effects: The Reflection Problem , 1993 .

[9]  Giorgio Topa,et al.  Do Informal Referrals Lead to Better Matches? Evidence from a Firm's Employee Referral System , 2012, SSRN Electronic Journal.

[10]  L. Loury Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages , 2006, Journal of Labor Economics.

[11]  F. Kramarz,et al.  When Strong Ties are Strong: Networks and Youth Labor Market Entry , 2013 .

[12]  Giorgio Topa,et al.  Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes , 2005, Journal of Political Economy.

[13]  Mark S. Granovetter T H E S T R E N G T H O F WEAK TIES: A NETWORK THEORY REVISITED , 1983 .

[14]  M. Jackson,et al.  The Effects of Social Networks on Employment and Inequality , 2004 .

[15]  Lawrence F. Katz,et al.  Notes on behavioral economics and labor market policy , 2012 .

[16]  Adriaan R. Soetevent,et al.  Wages and Employment in a Random Social Network with Arbitrary Degree Distribution , 2006 .

[17]  Lada A. Adamic,et al.  The role of social networks in information diffusion , 2012, WWW.

[18]  Christopher J. Fariss,et al.  Inferring Tie Strength from Online Directed Behavior , 2013, PloS one.

[19]  Eric Gilbert,et al.  Predicting tie strength with social media , 2009, CHI.

[20]  The structure of social networks and labour market success , 2012 .

[21]  C. Dustmann,et al.  Referral-Based Job Search Networks , 2016, SSRN Electronic Journal.

[22]  Lori Beaman,et al.  Social Networks and the Dynamics of Labour Market Outcomes: Evidence from Refugees Resettled in the U.S , 2012 .

[23]  Lori Beaman,et al.  Who Gets the Job Referral? Evidence from a Social Networks Experiment , 2012 .

[24]  M. Hoffman,et al.  The Value of Hiring through Employee Referrals , 2015 .

[25]  S. Goyal,et al.  Strong Ties in a Small World , 2006 .

[26]  Lorenzo Cappellari,et al.  With a little help from my friends?: quality of social networks, job finding and job match quality , 2015 .

[27]  F. Cingano,et al.  People I Know: Job Search and Social Networks , 2008, Journal of Labor Economics.

[28]  A-L Barabási,et al.  Structure and tie strengths in mobile communication networks , 2006, Proceedings of the National Academy of Sciences.

[29]  O. Bandiera,et al.  Social Connections and Incentives in the Workplace: Evidence from Personnel Data , 2009, SSRN Electronic Journal.

[30]  David Neumark,et al.  Neighbors and Co-Workers: The Importance of Residential Labor Market Networks , 2008 .

[31]  Nan Lin,et al.  SOCIAL NETWORKS AND STATUS ATTAINMENT , 1999 .

[32]  Olof Åslund,et al.  Seeking Similarity: How Immigrants and Natives Manage in the Labor Market , 2014, Journal of Labor Economics.

[33]  Gordon H. Hanson,et al.  Ties to Gains? Evidence on Connectedness and Human Capital Acquisition , 2010 .

[34]  Emilio J. Castilla Vaccines: Preventing Disease & Protecting Health Edited by Ciro A. de Quadros Annapolis Junction, MD: Pan American Health Organization (PAHO) Publications, 2004. 412 pp., illustrated. $62.00 (paper) , 2005 .

[35]  Nan Lin,et al.  Analyzing the Instrumental Use of Relations in the Context of Social Structure , 1978 .

[36]  M. Mobius,et al.  Trust and Social Collateral , 2007 .

[37]  S. Boorman A Combinatorial Optimization Model for Transmission of Job Information through Contact Networks , 1975 .

[38]  H. Holzer,et al.  Informal Job Search and Black Youth Unemployment , 1986 .

[39]  James D. Montgomery,et al.  Job Search and Network Composition: Implications of the Strength-Of-Weak-Ties Hypothesis , 1992 .

[40]  R. Burt Structural Holes and Good Ideas1 , 2004, American Journal of Sociology.

[41]  Kelly Shue,et al.  Executive Networks and Firm Policies: Evidence from the Random Assignment of MBA Peers , 2013 .

[42]  D. Neumark,et al.  Neighbors and Coworkers: The Importance of Residential Labor Market Networks , 2011, Journal of Labor Economics.

[43]  Bruce I. Sacerdote,et al.  Peer and social networks in job search , 2002 .

[44]  Yann Bramoullé,et al.  Social Networks and Labor Market Transitions , 2004, SSRN Electronic Journal.

[45]  Curtis J. Simon,et al.  Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure , 1992, Journal of Labor Economics.

[46]  Troy Tassier Labor Market Implications of Weak Ties , 2006 .

[47]  Bryan S. Graham,et al.  Identifying Social Interactions Through Conditional Variance Restrictions , 2008 .

[48]  V. Yakubovich Weak Ties, Information, and Influence: How Workers Find Jobs in a Local Russian Labor Market , 2005 .

[49]  Robert E. Kraut,et al.  Using facebook after losing a job: differential benefits of strong and weak ties , 2013, CSCW.

[50]  Yves Zenou,et al.  A Dynamic Model of Weak and Strong Ties in the Labor Market , 2015, Journal of Labor Economics.

[51]  Yves Zenou,et al.  Centre De Referència En Economia Analítica Barcelona Economics Working Paper Series Working Paper Nº 180 Strong and Weak Ties in Employment and Crime Strong and Weak Ties in Employment and Crime * Barcelona Economics Wp Nº 180 , 2022 .

[52]  Bruce I. Sacerdote Peer Effects in Education: How Might They Work, How Big Are They and How Much Do We Know Thus Far? , 2011 .

[53]  Lars Backstrom,et al.  Structural diversity in social contagion , 2012, Proceedings of the National Academy of Sciences.

[54]  Ee-Peng Lim,et al.  Influentials, Novelty, and Social Contagion: The Viral Power of Average Friends, Close Communities, and Old News , 2012, Soc. Networks.

[55]  Giorgio Topa Labor Markets and Referrals , 2011 .

[56]  Yannis M. Ioannides,et al.  Job Information Networks, Neighborhood Effects, and Inequality , 2004 .

[57]  Lars Backstrom,et al.  The Anatomy of the Facebook Social Graph , 2011, ArXiv.

[58]  Yannis M. Ioannides,et al.  Identification of Social Interactions , 2010 .

[59]  K. Leicht,et al.  The consequences of informal job finding for men and women , 1997 .

[60]  Jeremy R. Magruder Intergenerational Networks, Unemployment, and Persistent Inequality in South Africa , 2010 .

[61]  Jason J. Jones,et al.  The paradox of weak ties in 55 countries , 2017 .

[62]  Mark S. Granovetter The Strength of Weak Ties , 1973, American Journal of Sociology.

[63]  Kaivan Munshi,et al.  Labor and Credit Networks in Developing Economies , 2011 .