Matchmaking and production of social networks
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Comet User Inactive Registered: Kuantan dating girl dating sites Marriage not dating song list. Matchmaking and production of social networks. Groovy User Inactive Registered: Titch User Inactive Registered: Cutie User Inactive Registered: Flame User Inactive Registered: Navigator User Inactive Registered: A well-crafted early study found that the advent of internet exchanges reduced the dispersion of prices for a standardized product: Since the internet made it easy to compare prices, firms charging above-market rates found it harder to attract customers. Another feature of well-functioning markets is that matches between suppliers and customers are made quickly, so few resources lie idle.
Pursuing this idea, a further study from has shown that the entry of the US website Craigslist—which is widely used for home rentals—into a city reduces the apartment vacancy rate. Given this, it is perhaps surprising that most early studies of the effects of the internet on the speed and efficiency of labor market matching do not show a beneficial effect. The first study to compare the job search outcomes of persons looking for work online with similar workers not looking online used data from and .
The authors found—much to their surprise—that unemployed people who looked for work online were less likely to be reemployed than unemployed people who did not look online. One possible explanation for this puzzling result is the formal nature of internet search: Not only is a formal search less effective, but persons who use it may be doing so precisely because their informal contacts and social networks are poor.
Another possibility is low search intensity: Could it be that the low cost of internet job searching attracts many searches from people with only a casual interest in finding a new job? The authors here took advantage of the fact that the Craigslist website expanded dramatically during that period, but at different times in different cities.
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Consistent with the earlier findings  , the later study found no effect of Craigslist on the local unemployment rate . In the issue of internet search effectiveness was revisited using survey data obtained in and . The authors did their utmost to use exactly the same sampling rules and statistical methodology used in the earlier study . So why does internet job search appear to have been effective—at least for the individuals who used it—in but not ten years earlier?
Turning first to the earlier hypotheses  , the later study shows that, at least by , internet search was not a casual, low-intensity activity: As noted, the authors do find, however, that even in the internet was still largely a formal job search channel; thus, any improvements in internet job matching must be largely due to improvements in how these formal channels work.
Matchmaking - Wikipedia
What kinds of improvements might these have been? One candidate that leaps immediately to mind is the better design of internet job search sites. That said, as Figure 2 makes clear, a significant share of internet searching involves activities that do not use job boards at all.
For this reason, we think that a more likely explanation for the recent greater effectiveness of internet job search—one consistent with the significant rise in online job search over the past decade—is network externalities: Internet job boards are a rich source of information on the number and characteristics both of vacant jobs and of those looking for jobs, and sometimes the results of the matching process between searchers and jobs. One key advantage of job board data is their immediacy: Because new job board information can be downloaded almost continuously, it can provide highly current information on labor market trends.
Monster claims that its index provides useful advance information, since job advertising typically precedes hiring by one or two months. Monster also releases detailed reports on the online market for specific job categories such as sales in individual US cities. Reports like these may one day provide useful information on emerging skill shortages and surpluses that can be used by workers, firms, and local community colleges in refining their search and training strategies.
Also, since the Conference Board in the US has released its Help Wanted OnLine data series HWOL , which measures the number of new, first-time online jobs and jobs reposted from the previous month for more than 16, internet job boards. A related use of internet data to measure labor market trends is based on counts of keyword searches, such as Google Trends data. Second, job board data can serve as a complement to traditional social and labor force surveys as a general social science research tool, providing data on a number of aspects of labor market activity and outcomes that are hard to obtain otherwise.
In this regard, job board data are especially useful in the study of specialized, local, or rapidly evolving labor markets in developed countries for example, the market for IT workers where standard labor force surveys do not provide enough detail, and of markets in less-developed countries where standard labor force data are not available or of high quality.
In such situations, data that are voluntarily provided by a job board, or even data that are scraped from the internet by a user-designed web crawler, can be a unique source of basic labor market information. A final use of job board data is to advance economic research of the most basic and fundamental kind. Specifically, internal job board data contain detailed information on the mechanics of the labor market that is of potentially great relevance to how economists should best model labor markets. It is, in fact, amazing how little labor economists know about the actual mechanics of how workers get assigned to jobs, such as the share of jobs that are filled via formal applications, the number of applications that are submitted to a typical advert, and the number of applications workers make and where they apply.
Filling some of these gaps, a series of papers uses job board data to show that when employers are especially eager to fill a vacancy, they specify fewer job requirements, provide more details about the job application process, fill the vacancies faster, and are more likely to fill the job with an underqualified worker.
Mortensen and his coauthors. Also in this vein, an analysis of data provided by CareerBuilder, the largest job board in the US, shows that labor markets are much more specialized than the users of the above models have typically assumed . Personal and professional networking sites, like Facebook and LinkedIn, are a key online tool whose implications for labor markets are not yet fully understood. That said, one emerging way these sites affect labor markets is by providing information to employers that was previously unavailable: Given the finding that informal online job searching—that is asking friends or family about jobs—is still rare but highly effective when it is used, these developments might significantly improve matching efficiency in labor markets.
At the same time, internet-sourced labor market data, such as HWOL and Google Trends data on job searches, remain in their infancy. Much more remains to be done in harnessing the potential of the internet as a source of highly detailed, real-time data on the functioning of labor markets. A key limitation of studies which compare unemployment durations of internet versus non-internet searchers, is that they do not reveal the effects of improved search technologies on the overall unemployment rate in the economy .
The internet as a labor market matchmaker
Thus, additional research on the aggregate effects of the new search technologies would be very useful. And while internet job boards have tremendous potential as data sources, it is important to remember that these data are not representative of the workers or jobs in the labor market as a whole. By their nature, ads represent vacant jobs, which means that growing and high-turnover industries, occupations, and regions will be overrepresented. Finally, as we have noted, young and highly educated workers are much more likely to job search online than other workers. These technical issues need to be resolved to make job board data more useful as an indicator of national patterns and trends.
Despite negative early findings, recent research suggests that online job searching might indeed speed up the reemployment of unemployed workers. If so, the rapid spread of internet job searching suggests that the rise in unemployment seen in the Great Recession, large as it was, may actually underrepresent its severity compared with previous recessions.
Macroeconomic policymakers may wish to take this into account. Another emerging policy concern involves the effects of online labor exchanges like MTurk and oDesk, which allow the direct online exchange of labor services, often across international borders. Whether online exchanges and the labor they facilitate should be regulated is a question policymakers need to consider, although the industry may still be evolving too rapidly for most forms of regulation to be practical. A reasonable starting point, however, might be a common set of privacy guidelines or certificates for all job boards.
Finally, policymakers may wish to use government resources to take greater advantage of the tremendous potential of internet-sourced data on labor markets.
Small infusions of public funding could yield great rewards by supplementing expensive, slow-moving surveys with internet-sourced data on market conditions and emerging labor market shortages that are both relatively cheap to collect and available in real time. The author thanks an anonymous referee and the IZA World of Labor editors for many helpful suggestions on earlier drafts.