No ties that bind : low skill workers, social networks and job search in the Silicon Valley's new economy

Abstract

This dissertation is concerned with the relationship between economic growth and social and economic equity. Equity is defined as the economic growth that enables lesser skilled workers to access employment opportunities that provide them some measure of upward mobility. The thesis considers whether personal networks - a key means of searching for work - are likely to provide any upward mobility for low-skill workers. This thesis examines the role social networks play in providing access to employment opportunities and upward mobility in light of the new economy. In the old economy, lesser skilled workers used friends and family to gain access to entry-level jobs. Because these jobs were largely unskilled, employers looked primarily to these contacts as references for employment. Once hired, the social contract between the worker and the firm meant workers could depend on those jobs for lifelong employment. In the new economy, flexible work systems and new forms of work have created a more fluid labor market with significantly more job changing. As lesser skilled workers negotiate this new terrain, they must determine how to use their networks to identify employment opportunities that offer wage mobility. This study measures the personal contacts of a small sample of 44 lesser skilled workers against the fastest growing occupations and industries in the regional economy of the Silicon Valley.

(cont.) Methods include survey research, quantitative analysis and in-depth interviews. The data reveal that while the majority of personal contacts were to people in low status jobs, respondents also possessed contacts that were higher status workers with better labor market information about employment opportunities. However, most low-skill workers were hesitant to activate these well-placed networks. This thesis explores the reticence to activate networks and discusses the public policy implications of network use for upward mobility. It finds that networks are necessary for job search, but not sufficient for upward mobility absent a significant increase in skill. The policy recommendations argue for regional institutions as the point of intervention for policy implementation and labor market reform.