Don't know about contacts getting you in over someone with 1000hrs more than you. Not for entry level pilots anyway. 1200 vs 250, I know who I'd choose. It would depend on the job type and the higher timed guys answers also. But 500hrs is a maybe for an entry level job if the boss really likes your mate, for similar hours contacts ARE the difference between getting a start and "sorry, call again next week".
And people, the "sorry, call again next week" line will get used like a broken record by the CP if you are just another pilot.