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The Recruitment Paradox: Network Recruitment, Structural Position, And East German Market Transition, Richard A. Benton, Steve Mcdonald, Anna Manzoni, David F. Warner

Department of Sociology: Faculty Publications

Economic institutions structure links between labor-market informality and social stratification. The present study explores how periods of institutional change and post-socialist market transition alter network-based job finding, in particular informal recruitment. We highlight how market transitions affect both the prevalence and distribution of network-based recruitment channels: open-market environments reduce informal recruitment’s prevalence but increase its association with high wages. We test these propositions using the case of the former East Germany’s market transition and a comparison with West Germany’s more stable institutional environment. Following transition, workers in lower tiers increasingly turned toward formal intermediaries, active employee search, and socially “disembedded” …