Arbeit, Konjunktur, Mobilität, Regionen

What a Difference Peers Can Make: The Impact of Social (Work) Norms on Unemployment Duration

04.05.2009 | HWWI Research Paper | von Andreia Tolciu

Social interaction models, i.e. the changing sequence of actions between individuals who modify their behaviour under the infuence of their peers, have rarely enjoyed as high a pro le in economic analysis as they do today. This paper outlines a model of how social interactions among persons belonging to the same region might infuence the individual unemployment duration. The impact is assumed to be enhanced through social work norms shared by the group peers. Building up on a mix of German data sets and by employing multilevel analysis, the results show that in conjunction with socio-demographic and regional characteristics, social interactions in terms of social work norms do contribute in explaining the individual unemployment duration.