Social networks and job quality in Mexico: 2005–2019

This investigation analyzes labor implications of employment procurement through friends and family on wages, workers' benefits and job longevity in comparison to other job search methods in Mexico during 2005–2019. Various econometric models are performed. For salary, fixed effects by city and year will be estimated through Pooled Ordinary Least Squares (OLS). Second, it is analyzed if jobs obtained through friends and family are more likely to provide benefits equal to or greater than those required by law, for this, a logistic model and an ordered logistic model are employed with fixed effects; and finally, for the duration of employment we use a parametric survival model. The results indicate that employment procured through family and friends result in higher salaries and longer work durations but less work benefits.