College Networks and Re-employment of Displaced Workers

We provide the first evidence on the role of college networks in the re-employment of displaced workers. An extensive literature examines the consequences of layoffs, but the factors which facilitate re-employment are relatively under-studied. Using administrative data and a cross-cohort design, we...

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Bibliographic Details
Published in:Finance and economics discussion series 2023-06 (2023-043), p.1-51
Main Authors: Ost, Ben, Pan, Weixiang, Webber, Douglas
Format: Article
Language:English
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Summary:We provide the first evidence on the role of college networks in the re-employment of displaced workers. An extensive literature examines the consequences of layoffs, but the factors which facilitate re-employment are relatively under-studied. Using administrative data and a cross-cohort design, we find that network connections with actively-hiring employers increase the re-employment rate. This result is driven by re-employment at contact’s firms suggesting that a stronger network does not improve worker quality more broadly. These results suggest that college has the potential to improve employment outcomes beyond improved human capital and signaling.
ISSN:1936-2854
2767-3898
DOI:10.17016/feds.2023.043