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How Do Informal Social Networks Impact on Labor Earnings in Turkey?

Year 2019, Volume: 27 Issue: 41, 183 - 210, 31.07.2019
https://doi.org/10.17233/sosyoekonomi.2019.03.09

Abstract

The informal social networks are one of the prominent factors in the labor market decisions both for the supply and demand side. Particularly, in developing countries, like Turkey, these informal networks have an influence on the labor market. However, even the existence of this issue, the impact of informal social networks has not been argued sufficiently for the Turkish case. In this respect, this study advances existing researches, by implementing the quantile regression method to reveal the impact of the informal social networks. The quantile regression analysis reveals the impacts of the different quantiles of wages. The Household Labor Force Survey (HLFS) is utilized for 2004-2016 period. The findings indicate that being recruited by social contacts has negative impact on wage levels and in consequence, aggregate productivity is decreased from low quality of labor force and the low return to the firm.

References

  • Akerlof, G. A. & Rachel E. Kranton. (2000), “Economics and Identity”, Quarterly Journal of Economics, 115(3), 715–53.
  • Akerlof, G. A. (1980), “A Theory of Social Custom, of which Unemployment may be one Consequence”, Quarterly Journal of Economics, 94(4), 749–75.
  • Beaman, L. & Magruder, J. (2012), “Who Gets the Job Referral? Evidence from a Social Networks Experiment”, American Economic Review, 102 (7), 3574–93.
  • Beggs, J. J. & Jeanne S. H. (1997), “The Social Context of Men's and Women's Job Search Ties: Membership in Voluntary Organizations, Social Resources, and Job Search Outcomes”, Sociological Perspectives, 40, 601-622.
  • Bentolila, S., Michelacci, C. & Suarez, J. (2010), “Social Contacts and Occupational Choice”, Economica, 77, 20–45.
  • Brass, D. J. (1985), “Men's and Women's Networks: A Study of Interaction Patterns and Influence in an Organization”, Academy of Management Journal, 28, 327-43.
  • Brown, M., Setren, E. & Topa, G. (2016), “Do Informal Referrals Lead to Better Matches? Evidence from a Firm’s Employee Referral System”, Journal of Labor Economics, 34(1), 161-209.
  • Brown, M., Setren, E., & Topa, G. (2012), “Do Informal Referrals Lead to Better Matches? Evidence from a Firm’s Employee Referral System”. FRB of New York Staff Report, 568.
  • Campbell, K. (1988), “Gender Differences in Job-related Networks”, Work and Occupations, 15, 179-200.
  • Casella, A. & Hanaki, N. (2006), “Why Personal Ties cannot be Bought”, The American Economic Review, 96(2), 261–264.
  • Casella, A. & Hanaki, N. (2008), “Information Channels in Labor Markets: On the Resilience of Referral Hiring”, Journal of Economic Behavior&Organization, 66(3-4), 492–513.
  • Drentea, P. (1998), “Consequences of Women's Formal and Informal Job Search Methods for Employment in Female-dominated Jobs”, Gender and Society, 12, 321-338.
  • Dustman, C., Glitz A., Schönberg, U. & Brücker, H. (2016), “Referral-based Job Search Networks”, Review of Economic Studies, 83, 514-546.
  • Dustmann, C., Glitz, A., & Sch¨onberg, U. (2011), “Referral-based Job Search Networks”, IZA Discussion Papers, 5777, Institute for the Study of Labor (IZA).
  • Elliot, James R. (1999), “Social Isolation and Labor Market Insulation: Network and Neighborhood Effects on Less-educated Urban Workers”, The Sociological Quarterly, 40, 199-216.
  • Holzer, Harry J. (1987), “Job Search by Employed and Unemployed Youth”, Industrial and Labor Relations Review, 40, 601-11.
  • Huffman, M. L. & Lisa T. (2001), “Job Search Methods: Consequences for Gender-Based Earnings Inequality, Journal of Vocational Behavior 58, 127-141.
  • Ibarra, H. (1992), “Homophily and Differential Returns: Sex Differences in Network Structure and Access in an Advertising Firm”, Administrative Science Quarterly, 37, 422-47.
  • Koenker R. & Bassett, G. (1978), “Regression Quantiles”, Econometrica, 46(1), 33–50.
  • Kugler, A. D. (2003), “Employee Referrals and Efficiency Wages”, Labor Economics, 10, 531–556.
  • Marmaros, D. & Sacerdote, B. (2002), “Peer and Social Networks in Job Search”, European Economic Review, 46, 870–79.
  • Montgomery, J. (1991), “Social Networks and Labor-market Outcomes: Toward an Economic Analysis”, The American Economic Review, 1408–18.
  • Montgomery, J. D. (1991), “Social Networks and Labor-market Outcomes: Toward an Economic Analysis”, The American Economic Review, 81, 5.
  • Moore, Gwen. (1990), “Structural Determinants of Men's and Women's Personal Networks”, American Sociological Review, 55, 726-35.
  • Pellizzari, M. (2004), “Do Friends and Relatives Really Help in Getting a Good Job?”, CEP Discussion Paper, No 623, March.
  • Pistaferri, L. (1999), Informal Networks in the Italian Labor Market”, Giornale degli Economisti e Annali di Economia, 58, 355–75.
  • Saloner, G. (1985), “Old Boy Networks as Screening Mechanism”, Journal of Labor Economics, 3, 255–67.
  • Silliker, Alan S. (1993), “The Role of Social Contacts in the Successful Job Search”, Journal of Employment Counseling, 30, 25-34.
  • Simon, C. & Warner, J. (1992), “Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure”, Journal of Labor Economics, 306–30.
  • Straits, B. C. (1998), “Occupational Sex Segregation: The Role of Personal Ties”, Journal of Vocational Behavior, 52, 191-207.

Türkiye’de Enformel Sosyal Çevre İşgücü Kazançlarına Nasıl Etkide Bulunmaktadır?

Year 2019, Volume: 27 Issue: 41, 183 - 210, 31.07.2019
https://doi.org/10.17233/sosyoekonomi.2019.03.09

Abstract

Enformel sosyal çevre, hem talep hem de arz yönlü emek piyasası kararları ile ilgili etkili olan belirgin faktörlerden biridir. Özellikle Türkiye gibi gelişmekte olan ülkelerde, enformel sosyal çevrenin emek piyasası üzerinde etkisi söz konusudur. Fakat, bu konunun önemine rağmen, Türkiye özelinde enformel sosyal çevrenin etkileri ile ilgili yeteri boyutta tartışma literatürde yer almamaktadır. bu bağlamda, literatürde yer alan bu boşluğu doldurabilmek için, bu çalışmada, enformel sosyal çevrenin etkilerinin tahmin edilebilmesi için kantil regresyon analizi uygulanmıştır. Kantil regresyon analizi farklı kantilerdeki etkilerin açığa çıkarılmasını sağlamaktadır. 2004-2016 dönemine ait Hanehalkı İşgücü Anketleri kullanılmıştır. Elde edilen bulgulara göre, enformel sosyal çevre aracılığıyla iş bulmanın ücret düzeyi üzerinde negatif etkisi söz konusudur. Bununla birlikte, işgücü kalitesinin ve firma getirisinin düşüklüğünün toplam üretkenliği azalttığına dair sonuçlar elde edilmiştir.

References

  • Akerlof, G. A. & Rachel E. Kranton. (2000), “Economics and Identity”, Quarterly Journal of Economics, 115(3), 715–53.
  • Akerlof, G. A. (1980), “A Theory of Social Custom, of which Unemployment may be one Consequence”, Quarterly Journal of Economics, 94(4), 749–75.
  • Beaman, L. & Magruder, J. (2012), “Who Gets the Job Referral? Evidence from a Social Networks Experiment”, American Economic Review, 102 (7), 3574–93.
  • Beggs, J. J. & Jeanne S. H. (1997), “The Social Context of Men's and Women's Job Search Ties: Membership in Voluntary Organizations, Social Resources, and Job Search Outcomes”, Sociological Perspectives, 40, 601-622.
  • Bentolila, S., Michelacci, C. & Suarez, J. (2010), “Social Contacts and Occupational Choice”, Economica, 77, 20–45.
  • Brass, D. J. (1985), “Men's and Women's Networks: A Study of Interaction Patterns and Influence in an Organization”, Academy of Management Journal, 28, 327-43.
  • Brown, M., Setren, E. & Topa, G. (2016), “Do Informal Referrals Lead to Better Matches? Evidence from a Firm’s Employee Referral System”, Journal of Labor Economics, 34(1), 161-209.
  • Brown, M., Setren, E., & Topa, G. (2012), “Do Informal Referrals Lead to Better Matches? Evidence from a Firm’s Employee Referral System”. FRB of New York Staff Report, 568.
  • Campbell, K. (1988), “Gender Differences in Job-related Networks”, Work and Occupations, 15, 179-200.
  • Casella, A. & Hanaki, N. (2006), “Why Personal Ties cannot be Bought”, The American Economic Review, 96(2), 261–264.
  • Casella, A. & Hanaki, N. (2008), “Information Channels in Labor Markets: On the Resilience of Referral Hiring”, Journal of Economic Behavior&Organization, 66(3-4), 492–513.
  • Drentea, P. (1998), “Consequences of Women's Formal and Informal Job Search Methods for Employment in Female-dominated Jobs”, Gender and Society, 12, 321-338.
  • Dustman, C., Glitz A., Schönberg, U. & Brücker, H. (2016), “Referral-based Job Search Networks”, Review of Economic Studies, 83, 514-546.
  • Dustmann, C., Glitz, A., & Sch¨onberg, U. (2011), “Referral-based Job Search Networks”, IZA Discussion Papers, 5777, Institute for the Study of Labor (IZA).
  • Elliot, James R. (1999), “Social Isolation and Labor Market Insulation: Network and Neighborhood Effects on Less-educated Urban Workers”, The Sociological Quarterly, 40, 199-216.
  • Holzer, Harry J. (1987), “Job Search by Employed and Unemployed Youth”, Industrial and Labor Relations Review, 40, 601-11.
  • Huffman, M. L. & Lisa T. (2001), “Job Search Methods: Consequences for Gender-Based Earnings Inequality, Journal of Vocational Behavior 58, 127-141.
  • Ibarra, H. (1992), “Homophily and Differential Returns: Sex Differences in Network Structure and Access in an Advertising Firm”, Administrative Science Quarterly, 37, 422-47.
  • Koenker R. & Bassett, G. (1978), “Regression Quantiles”, Econometrica, 46(1), 33–50.
  • Kugler, A. D. (2003), “Employee Referrals and Efficiency Wages”, Labor Economics, 10, 531–556.
  • Marmaros, D. & Sacerdote, B. (2002), “Peer and Social Networks in Job Search”, European Economic Review, 46, 870–79.
  • Montgomery, J. (1991), “Social Networks and Labor-market Outcomes: Toward an Economic Analysis”, The American Economic Review, 1408–18.
  • Montgomery, J. D. (1991), “Social Networks and Labor-market Outcomes: Toward an Economic Analysis”, The American Economic Review, 81, 5.
  • Moore, Gwen. (1990), “Structural Determinants of Men's and Women's Personal Networks”, American Sociological Review, 55, 726-35.
  • Pellizzari, M. (2004), “Do Friends and Relatives Really Help in Getting a Good Job?”, CEP Discussion Paper, No 623, March.
  • Pistaferri, L. (1999), Informal Networks in the Italian Labor Market”, Giornale degli Economisti e Annali di Economia, 58, 355–75.
  • Saloner, G. (1985), “Old Boy Networks as Screening Mechanism”, Journal of Labor Economics, 3, 255–67.
  • Silliker, Alan S. (1993), “The Role of Social Contacts in the Successful Job Search”, Journal of Employment Counseling, 30, 25-34.
  • Simon, C. & Warner, J. (1992), “Matchmaker, Matchmaker: The Effect of Old Boy Networks on Job Match Quality, Earnings, and Tenure”, Journal of Labor Economics, 306–30.
  • Straits, B. C. (1998), “Occupational Sex Segregation: The Role of Personal Ties”, Journal of Vocational Behavior, 52, 191-207.
There are 30 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Bengi Yanık-ilhan This is me 0000-0003-1578-8390

Ayşe Aylin Bayar 0000-0003-2319-6491

Nebile Korucu-gümüşoğlu 0000-0003-3308-4362

Publication Date July 31, 2019
Submission Date August 1, 2018
Published in Issue Year 2019 Volume: 27 Issue: 41

Cite

APA Yanık-ilhan, B., Bayar, A. A., & Korucu-gümüşoğlu, N. (2019). How Do Informal Social Networks Impact on Labor Earnings in Turkey?. Sosyoekonomi, 27(41), 183-210. https://doi.org/10.17233/sosyoekonomi.2019.03.09
AMA Yanık-ilhan B, Bayar AA, Korucu-gümüşoğlu N. How Do Informal Social Networks Impact on Labor Earnings in Turkey?. Sosyoekonomi. July 2019;27(41):183-210. doi:10.17233/sosyoekonomi.2019.03.09
Chicago Yanık-ilhan, Bengi, Ayşe Aylin Bayar, and Nebile Korucu-gümüşoğlu. “How Do Informal Social Networks Impact on Labor Earnings in Turkey?”. Sosyoekonomi 27, no. 41 (July 2019): 183-210. https://doi.org/10.17233/sosyoekonomi.2019.03.09.
EndNote Yanık-ilhan B, Bayar AA, Korucu-gümüşoğlu N (July 1, 2019) How Do Informal Social Networks Impact on Labor Earnings in Turkey?. Sosyoekonomi 27 41 183–210.
IEEE B. Yanık-ilhan, A. A. Bayar, and N. Korucu-gümüşoğlu, “How Do Informal Social Networks Impact on Labor Earnings in Turkey?”, Sosyoekonomi, vol. 27, no. 41, pp. 183–210, 2019, doi: 10.17233/sosyoekonomi.2019.03.09.
ISNAD Yanık-ilhan, Bengi et al. “How Do Informal Social Networks Impact on Labor Earnings in Turkey?”. Sosyoekonomi 27/41 (July 2019), 183-210. https://doi.org/10.17233/sosyoekonomi.2019.03.09.
JAMA Yanık-ilhan B, Bayar AA, Korucu-gümüşoğlu N. How Do Informal Social Networks Impact on Labor Earnings in Turkey?. Sosyoekonomi. 2019;27:183–210.
MLA Yanık-ilhan, Bengi et al. “How Do Informal Social Networks Impact on Labor Earnings in Turkey?”. Sosyoekonomi, vol. 27, no. 41, 2019, pp. 183-10, doi:10.17233/sosyoekonomi.2019.03.09.
Vancouver Yanık-ilhan B, Bayar AA, Korucu-gümüşoğlu N. How Do Informal Social Networks Impact on Labor Earnings in Turkey?. Sosyoekonomi. 2019;27(41):183-210.