Relying on identifying variation from the timing of job movements of parents’ coworkers, I find that workers in Israel are three to four times more likely to find employment in firms where their parents have professional connections than in otherwise similar firms. I use the same variation to structurally estimate a two-sided matching model with search frictions and find that connections double the probability of meeting and increase by 35% the likelihood of being hired after meeting. The estimated willingness to pay for one additional meeting with a connected firm is 3.7% of the average wage. Connections matter for inequality; the wage gap between Arabs and Jews decreases by 12% when equalizing the groups’ connections but increases by 56% when prohibiting the hiring of connected workers. These seemingly opposing results are explained by the fact that Arabs have connections to lower-paying firms but use their connections more extensively.