Abstract
Do neighbors influence job search behavior? We address this question using a Manski-type model with four search channels. Results show that neighbors' use of a channel affects individuals' own use, particularly for signaling one's job search in the media and using personal or professional networks, as opposed to more conventional methods such as contacting employers or intermediaries. We also find effects of neighbors' occupations. Our findings suggest that local social interactions may amplify labor market inequalities across neighborhoods, as there are stronger incentives to search when unemployed neighbors are actively searching and employed neighbors hold higher-status jobs.
Submitted