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Law & Health Weekly

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Development Studies



New development studies study findings have been reported from University of Manchester



May 2nd, 2009

"Economists have focused on job search and supply-side explanations for network effects in labour transactions. This paper develops and tests an alternative explanation for the high prevalence of network-based labour market entry in developing countries," investigators in Manchester, the United Kingdom report.

"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...


Source: Law & Health Weekly (2009-05-02)

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