The Influence of Social Capital onLabor Market Mobility in Modern Russia

Abstract

The aim of this study is to assess the impact of various factors, including social networks, on labor market mobility in modern Russia. The main assumption is that weak ties facilitate taking a better job. The empirical base consists of data from the Russian Longitudinal Monitoring Survey (RLMS) of HSE for 2016–2017 and 2018–2019. Based on exploratory factor analysis, indicators of different types of social ties were constructed: weak ties include ties with acquaintances and colleagues; with organizations; online networks; and strong ties include ties with friends and relatives. Binary logistic regression estimated the chances of the unemployed going to work, while multinomial logistic regression assessed the chances of employed people for vertical and horizontal interfirm and intrafirm mobility, as well as transitions to unemployment or inactivity. Men, people with higher education, and lower specific work experience are more inclined to labor mobility. The best opportunities for intra-firm growth are among those employed by state enterprises and those holding a higher position. The study found a significant positive effect of increased education and improved health on mobility, a negative effect of health deterioration, and a higher propensity for mobility among those dissatisfied with their current job. Granovetter’s assumption about a greater influence of weak social ties on the ability to get a good job could not be confirmed, although due to the instability of the results, it cannot be refuted either. The model estimates showed a stable and equally strong effect of both strong (with friends) and weak (with acquaintances, former colleagues, neighbors) ties on the chances of finding a job for the unemployed, as well as a negative effect of online social networks on the chances of becoming inactive for the employed. No effect of social connections on intra-firm growth was found, and the effect of online networks on inter-firm promotion was inconsistent.