ABSTRACT
Public opinion thinks highly of the usefulness of networks as a key to occupational success. The social capital idea helps to specify the influence of social relations while searching for a job. Social capital is the resultant of the size of the network, the structure of the network, the investments in network members, and the resources of these network members. Several labor-market characteristics may be expected to influence the decision to engage in informal job search, such as, example, the degree of closure in the particular job market in which the person is trying to locate a job. Employers who want to select a good candidate have but two alternatives: selecting candidates on formal criteria—example, on education only—or making an extra effort by collecting in-depth information on the candidate— example, on his capabilities and trustworthiness—through informal relationships or psychological tests. Sometimes an employer makes a distinction between two consecutive phases, recruitment and selection.
