The role of social networks in employment outcomes of Bolivian women

Abstract

This paper explores the role of social networks in determining labor market participation and salaried employment of Bolivian women and men. We define social networks as the share of neighbors that have jobs, and find that networks encourage women’s labor force participation and that they are effective channels through which women and men find salaried employment. Furthermore, men and urban women use same sex contacts to find salaried work. Our findings suggest that social networks have positive externalities that may reduce gender disparities in Bolivia’s labor market: educating women, for instance, has a direct individual effect—labor market participation in better jobs—and an indirect effect by enlarging the female social network.