Labor Market Implications of Weak Ties
Troy Tassier
Abstract
Troy Tassier
Abstract
Although many workers find employment through weak ties, previous studies have shown little empirical support for a connection between weak ties and income. In this article, I explain one reason why the survey methods used in previous studies underestimate, perhaps greatly, the effect of weak ties on income. In addition, I demonstrate a more direct method of estimating the effect of weak ties on income by using information from the General Social Survey on the overlap of close friends of respondents. I find that the range of social connections provided by weak ties has a significant and economically meaningful effect on income.
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Although many workers find employment through weak ties, previous studies have shown little empirical support for a connection between weak ties and income. In this article, I explain one reason why the survey methods used in previous studies underestimate, perhaps greatly, the effect of weak ties on income. In addition, I demonstrate a more direct method of estimating the effect of weak ties on income by using information from the General Social Survey on the overlap of close friends of respondents. I find that the range of social connections provided by weak ties has a significant and economically meaningful effect on income.
Key concepts: Interpersonal ties, Strong ties, Economics, Demographic economics, Family ties, Labour economics, Psychology, Social psychology