We develop a model where information about jobs is essentially obtained through friends and relatives, i.e. strong and weak ties. Workers commute to a business center to work and to interact with other people. We find that housing prices increase with the level of social interactions in the city because information about jobs is transmitted more rapidly and, as a result, individuals are more likely to be employed and to be able to pay higher land rents. We also show that, under some condition, workers using more their weak ties than strong ties to find a job receive a higher wage. We finally demonstrate that workers living far away from jobs pay lower housing prices but experience higher unemployment rates than those living close to jobs because they mainly rely on their strong ties to obtain information about jobs. -- Weak ties ; labor market ; social networks ; land rent
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Pour mieux comprendre le rôle des réseaux sociaux sur le marché du travail, nous proposons deux modèles simples où les individus s'entraident dans leur recherche d'emploi. Dans le premier, l'information sur les emplois circule entre les individus en relation et nous montrons qu'il existe un équilibre de long terme avec regroupement des travailleurs de même statut puisque les salariés ont tendance à se lier à d'autres salariés plutôt qu'à des chômeurs. Dans le second modèle, les individus ont des liens qui peuvent être forts ou faibles et ils décident du temps qu'ils y consacreront. Comme dans Granovetter, ce modèle met l'accent sur l'intensité des liens faibles qui donnent accès à de nouvelles sources d'information sur l'offre d'emplois en créant une vague secondaire de contacts appartenant à des réseaux plus éloignés. Nous discutons ensuite les implications en termes de politique publique en montrant comment ces analyses permettent d'expliquer le chômage élevé des minorités ethniques.
To better understand the way social networks operate in the labor market, we propose two simple models where individuals help each other finding a job. In the first one, job information flows between individuals having a link with each other and we show that an equilibrium with a clustering of workers with the same status is likely to emerge since, in the long run, employed workers tend to be friends with employed workers. In the second model, individuals interact with both strong and weak ties and decide how much time they spend with each of them. As in Granovetter, this model stresses the strength of weak ties in finding a job because they involve a secondary ring of acquaintances who have contacts with networks outside ego's network and therefore offer new sources of information on job opportunities. We then discuss some policy implications showing how these models can explain why ethnic minorities tend to experience higher unemployment rate than workers from the majority group. Adapted from the source document.
AbstractThis paper consists in three parts. The first part deals with theory. We evaluate the pros and cons of government involvement in urban housing and of renting versus ownership. In the second part, we summarize the different housing policies that have been implemented in the United States, Europe and Asia. We draw some conclusions. In particular, we show that there is a tradeoff between encouraging home ownership and social housing since countries that have favoured the former have neglected the latter (like Japan, Spain, etc.). In the third part, we use the theory and the international policy parts to address housing policy issues in China. One of the main concerns in Chinese cities is the rise of poverty mainly by 'illegal' migrants (who are Chinese rural residents) living in 'urban villages'. We propose two steps to fight against poverty in Chinese cities. The first one is to require that the Chinese government recognizes these 'illegal' migrants by helping them becoming 'legal'. The second step is to encourage social housing that directly or indirectly subsidizes housing for the poor. In that case, to fight against poverty, one can either implement place‐targeted policies (like the enterprise zone programmes in the US and Europe and/or housing projects in the US, UK or France) or people‐targeted policies (like the moving to opportunity programmes in the US). We also discuss other issues related to poverty. In particular, we suggest that the government could also try to keep migrants in rural areas by attracting firms there and/or introduce a microfinance system that helps them become entrepreneurs.Resumen.Este artículo consta de tres partes. La primera parte trata aspectos teóricos. Evaluamos las ventajas y desventajas del involucramiento gubernamental en temas de vivienda urbana y de arrendamiento versus propiedad. En la segunda parte, resumimos las diferentes políticas de la vivienda implementadas en los Estados Unidos, Europa y Asia. Extraemos varias conclusiones. En particular, mostramos que hay un conflicto entre fomentar la adquisición de viviendas y promover políticas de vivienda social, pues aquellos países que han favorecido lo primero han descuidado lo segundo (p.ej.Japón oEspaña). En la tercera parte, empleamos las secciones de teoría y de política internacional para explorar temas relacionados con políticas de la vivienda enChina. Una de las mayores preocupaciones en las ciudades chinas es el aumento de la pobreza debido principalmente a inmigrantes 'ilegales' (residentes en laChina rural) y que viven en los llamados 'pueblos urbanos'. Proponemos dos pasos para la lucha contra la pobreza en la ciudades chinas. El primero es exigir que el gobierno deChina reconozca a estos emigrantes 'ilegales', ayudándolos a convertirse en 'legales'. El segundo paso es el fomentar políticas de vivienda social que, directa o indirectamente, subvencionen viviendas para los pobres. En ese caso, y en pro de la lucha contra la pobreza, se pueden implementar tanto políticas dirigidas a un área en particular (como los programas de zonas de fomento empresarial –enterprise zones– en losEE.UUyEuropa y los proyectos de vivienda social de losEE.UU, Reino Unido yFrancia), como políticas dirigidas a ciertos grupos de población (p.ej. los programas deAvance Hacia la Oportunidad / Moving to Opportunity, en losEE.UU.). Se discuten también otros asuntos relacionados con la pobreza. En particular, sugerimos que el gobierno podría intentar asimismo el mantener a los inmigrantes en sus áreas rurales, ya sea atrayendo empresas hacia dichas zonas y/o introduciendo sistemas de microfinanciación que los ayuden a convertirse en empresarios emprendedores.graphic
This article consists in three parts. The first part deals with theory. We evaluate the pros and cons of government involvement in urban housing and of renting versus ownership. In the second part, we summarize the different housing policies that have been implemented in the United States, Europe, and Asia. We draw some conclusions. In particular, we show that there is a tradeoff between encouraging home ownership and social housing since countries that have favor the former have neglected the latter (like Japan, Spain, etc.). In the third part, we use the theory and the international policy parts to address housing policy issues in China. One of the main concerns in Chinese cities is the raise of poverty mainly by illegal migrants (who are Chinese rural residents) living in urban villages. We propose two steps to fight against poverty in Chinese cities. The first one is to require that the Chinese government recognizes these illegal migrants by helping them becoming legal. The second step is to encourage social housing that directly or indirectly subsidizes housing for the poor. In that case, to fight against poverty, one can either implement place-targeted policies (like the enterprise zone programs in the US and Europe and/or housing projects in the US, UK, or France) or people-targeted policies (like the MTO programs in the US). We also discuss other issues related to poverty. In particular, we suggest that the government could also try to keep migrants in rural areas by attracting firms there and/or introduce a microfinance system that helps them become entrepreneurs.
This article consists in three parts. The first part deals with theory. We evaluate the pros and cons of government involvement in urban housing and of renting versus ownership. In the second part, we summarize the different housing policies that have been implemented in the United States, Europe, and Asia. We draw some conclusions. In particular, we show that there is a tradeoff between encouraging home ownership and social housing since countries that have favor the former have neglected the latter (like Japan, Spain, etc.). In the third part, we use the theory and the international policy parts to address housing policy issues in China. One of the main concerns in Chinese cities is the raise of poverty mainly by "illegal" migrants (who are Chinese rural residents) living in "urban villages". We propose two steps to fight against poverty in Chinese cities. The first one is to require that the Chinese government recognizes these "illegal" migrants by helping them becoming "legal". The second step is to encourage social housing that directly or indirectly subsidizes housing for the poor. In that case, to fight against poverty, one can either implement place-targeted policies (like the enterprise zone programs in the US and Europe and/or housing projects in the US, UK, or France) or people-targeted policies (like the MTO programs in the US). We also discuss other issues related to poverty. In particular, we suggest that the government could also try to keep migrants in rural areas by attracting firms there and/or introduce a microfinance system that helps them become entrepreneur.