The Role of Social Capital in the Search for a Job : A qualitative study investigating “the hidden job market” on Sørlandet

Abstract

Social capital and its effect on the job market has become an important aspect of how we view the job searching process. Much research on social capital in the job search stems from large generalizable surveys, meaning that little is known about the motives and insights of those responsible for employment. This thesis presents a qualitative study of how recruiters and employers in Norway view the use and potential benefits of using a social network when searching for a job. This study focuses on how referred applicants may have an advantage over the formal applicant and investigates the myth on Sørlandet regarding its “hidden job market”. As such, the study explores the experiences of those responsible for employment on Sørlandet. The empirical findings in the study are based on in-depth interviews with 11 employers responsible for the recruitment of their company or agency. The study reveals, amongst other, that there is a correlation between social capital, the usage of networks and higher work quality. Its findings also support the research regarding non-searchers and uncovers the myth, presenting the potential vastness of “the hidden job market” on Sørlandet. In relation to the research question, the study can, according to its findings, conclude that there is a causality between referred applicants and a higher yield ratio.