The effects of social capital on employment in Mexico

Abstract

This article explores the influence of physical and electronic social networks on the labor market, using data from the Self-Reported Welfare Survey for Mexico in 2014. Social capital has a positive influence on the employment situation of individuals. Having more than three friends decreases the probability of being unemployed between 1,1 and 1,8%; while the family network and electronic social networks are not significant. The results suggest that family capital is a kind of “unemployment insurance” and that friends provide information about vacancies and salaries.