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α: calibrated so average coauthorship-adjusted count equals average raw count
This paper investigates whether the employment status of neighbors influences the employment probability of workers who lost their job due to a plant closure, and the channels through which this occurs. Combining rich spatial information with administrative records, we find that a 10 percentage points higher neighborhood employment rate increases the probability of finding a job by 1.9%. Displaced workers not only benefit from neighborhood networks in terms of higher earnings and longer job stability but they are also more likely to find a job at the plant of a neighbor. These results indicate that neighbors refer workers to employers and that social norms are less likely to play a role.