The most popular method to acquire a job is to use one's circle of acquaintances or social networks to find a position. However, in the current research, there is still no clear conclusion if this job search method has positive implications for different job outcomes such as wages. This paper studies the effects of this job search approach in the context of Germany compared to the formal individual application procedure using the district-level spatial data from the SOEP. Moreover, a deeper look is taken at the effects of the used network type by disaggregating respondents by the type of network used: friends, family, or colleagues. The last part of the evaluation concentrates on the heterogeneity of outcomes by gender and region.
Themen: Arbeit und Beschäftigung , Persönlichkeit