Networks in labor economics refers to the effect social networks have on jobseekers obtaining employment. Research suggests that around half of the employed workforce found their jobs through social contacts. It is believed that social networks not only contribute to the efficiency of job searching but can also explain, at least partly, wage differences and other inequalities in the workforce. Various models are used to quantify this effect, all having their own strengths and weaknesses. Models generally have to simplify the complex nature of social networks.
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