1. Network versus Economic Incentives An economic sociological account of the transition from unemployment to employment Christian Albrekt Larsen Centre for Comparative Welfare studies (www.CCWS.dk), Aalborg University, Denmarkwww.CCWS.dk

2. 2 Theoretical argument I: Why network is of general importance The fundamental lack of information (Spence) Network Distribute information Provide ”more” information Provide trustworthy information

3. 3 Theoretical argument II: Why of special importance for long-term unemployed -”The vicious circle”: -loose the ”weak ties” to the labour market -Become more dependent on recommendations

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8. 8 Implications: -Knowledge about transition -Understanding the effects of activation -Guidelines for new policy measures