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Brown bag seminar | Village social structure and labor market performance: Evidence from the Philippines

Julien Labonne, Associate Professor at University of Oxford together with co-author, explores how social structure affects the functioning of labor market in a developing country. Focusing on the Philippines, where the main idea that there is a tendency for employers to hire within their networks. Join the SITE brown bag seminar to learn more!

Stockholm Institute of Transition Economics cordially invites you to join the online brown bag seminar `Village Social structure and Labor Market Performance: Evidence from the Philippines´ with Julien Labonne (co-author Stefano Caria, University of Warwick). Read the abstract below!

Julien Labonne is an Associate Professor of Economics and Public Policy at the University of Oxford and a Research Affiliate at CEPR (Public Economics and Development Economics). Julien's research interests are within Political Economy, Applied Econometrics, Development Economics.

Abstract

This paper studies how social structure affects the functioning of labor market in a developing country. We take as a starting point the idea that there is tendency for employers to hire within their networks. As social structure becomes more fragmented, the cost of doing so increases and employers start hiring individuals outside of their own network. This improves the performance of local labor markets. We use data on the names of 20 million individuals to measure the structure of marriage networks in 15,000 villages of the Philippines and combine them with detailed labor force surveys data to test those hypotheses. Individuals living in more socially fragmented villages are less likely to work in family firms, more likely to use formal job search strategies and earn higher wages. More socially fragmented villages are also richer. Those results are robust to controlling for recent migration and to an instrumental variable strategy, reducing concerns about reverse causality.

Interested in joining the seminar?

Please contact site@hhs.se and type the subject box with "Brown bag seminar *INSERT TITLE* at SITE" and describe in short who you are and why you want to join. Afterwards, the Zoom link will be sent to you by email with further instructions!

SITE Labor Economics Lunch seminar Brown bag

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