The Invisible Hand of Social Capital: An Exploratory Study1

Abstract

This chapter argues that social capital embedded in social networks that are full of resources benefit from having connections. It first considers some possible alternative explanations for the absence of reported use of personal contacts in job searches. Then it presents an elaboration of the theory of social capital. The chapter finally considers the invisible hand of social capital, which does not remove or discredit formal processes of job search and recruitment in the labor market.