The Role of Social Networks and Ties in Finding a Job in Economies Characterized with High Youth Unemployment: A Case study of Algeria and Jordan

Using nationally representative data from Algeria and Jordan, this paper shows that social networks and ties play an important role in labor market intermediation in Arab countries. In addition to descriptive analysis, we utilize binary probit regressions to investigate determinants of the probability of finding a job through social contacts. The study finds that social networks are a popular method to find a job in Algeria and Jordan but not for skilled jobs. Such methods increase the probability of obtaining less secured informal jobs. Also, the study shows that despite the importance of public sector agencies in the job search process, less than 5% in Algeria and 9% in Jordan of employed youth state that such agencies have helped them transit into employment