@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.},