@article { Iversen2009,
 title = {Job recruitment networks and migration to cities in India},
 author = {Iversen, Vegard and Sen, Kunal and Verschoor, Arjan and Dubey, Amaresh},
 journal = {Journal of Development Studies},
 number = {4},
 pages = {522-543},
 volume = {45},
 year = {2009},
 url = {http://nbn-resolving.de/urn:nbn:de:0168-ssoar-134718},
 abstract = {Economists have focused on job search and supply-side explanations for network effects in labour transactions. We develop and tests an alternative explanation for the high prevalence of network-based labour market entry in developing countries. In our theoretical framework, employers use employee networks as screening and incentive mechanisms to improve the quality of recruitment. Our framework suggests a negative relationship between network use and the skill intensity of jobs, a positive association between economic activity and network use and a negative relationship between network use and pro-labour legislation. Social identity effects are expected to intensify compared to information-sharing and other network mechanisms. Using data from an all-India Employment Survey we implement a novel empirical strategy to test these relationships and find support for our demand-side explanation.},
}