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Referral-based job search networks”,
- IZA Working Paper
, 2011
"... Abstract This paper derives novel testable implications of referral-based job search networks in which employees provide employers with information about potential new hires that they otherwise would not have. Using comprehensive matched employer-employee data covering the entire workforce in one l ..."
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Cited by 13 (2 self)
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Abstract This paper derives novel testable implications of referral-based job search networks in which employees provide employers with information about potential new hires that they otherwise would not have. Using comprehensive matched employer-employee data covering the entire workforce in one large metropolitan labor market combined with unique survey data linked to administrative records, we provide evidence that workers earn higher wages and are less inclined to leave their firms if they have obtained their job through a referral. These effects are particularly strong at the beginning of the employment relationship and decline with tenure in the firm, suggesting that firms and workers learn about workers' productivity over time. Overall, our findings imply that job search networks help to reduce informational deficiencies in the labor market and lead to productivity gains for workers and firms.
Do Informal Referrals Lead to Better Matches? Evidence from a Firm’s Employee Referral System”, Federal Reserve Bank of NY, Staff Report 568
, 2012
"... Abstract The limited nature of data on employment referrals in large business and household surveys has so far restricted our understanding of the relationships among employment referrals, match quality, wage trajectories and turnover. Using a new …rm-level dataset that includes explicit informatio ..."
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Cited by 11 (0 self)
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Abstract The limited nature of data on employment referrals in large business and household surveys has so far restricted our understanding of the relationships among employment referrals, match quality, wage trajectories and turnover. Using a new …rm-level dataset that includes explicit information on whether a worker was referred by a current employee of the company, we are able to provide rich detail on these empirical relationships for a single mid-to-large U.S. corporation, and to test various predictions of the theoretical literature on labor market referrals. We …nd that referred workers enter at higher wage levels, all else equal, but that the referred wage advantage dissipates by the third year of employment. After the …fth year the referral-wage relationship is reversed. Referred workers experience substantially less turnover, and this e¤ect is relatively long-lasting. Despite higher predicted productivity for referred workers in the theoretical literature, we …nd, if anything, slightly slower promotion rates for referred than for non-referred workers. Finally, the wide range of skill and experience levels represented in this corporation permit detailed analysis of the role of referrals for workers from support sta¤ to executives.
2001) ‘When Strong Ties Are Strong: Networks and Youth Labor Market Entry’, Institute for Labour Market Policy Evaluation (IFAU) Working Paper 2011: 18
"... The conditions under which young workers find their first real post-graduation jobs are important for their future careers and insufficiently documented given their potential importance for young workers welfare. To study these conditions, and in particular the role played by social ties, we use a S ..."
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Cited by 8 (0 self)
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The conditions under which young workers find their first real post-graduation jobs are important for their future careers and insufficiently documented given their potential importance for young workers welfare. To study these conditions, and in particular the role played by social ties, we use a Swedish population-wide linked employer–employee data set of graduates from all levels of schooling that includes detailed information on family ties, neighbourhoods, schools, class composition, and parents’ and children’s employers over a period covering years with both high and low unemployment, together with measures of firm performance. We find that strong social ties (parents) are an important determinant for where young workers find their first job. The effects are larger if the graduate’s position is “weak ” (low education, bad grades), during high unemployment years, and when information on potential openings are likely to be scarce. On the hiring side, by contrast, the effects are larger if the parent’s position is “strong ” (long tenure, high wage) and if the parent’s plant is more productive. The youths appear to benefit from the use of strong social ties through faster access to jobs and by better labour market outcomes as measured a few years after entry. In particular, workers finding their entry jobs through strong social ties are considerably more likely to remain in this job, while experiencing better wage growth than other entrants in the same plant. Firms also appear to benefit from these wage costs (relative to comparable entrants)
Do Job Networks Disadvantage Women? Evidence from a Recruitment Experiment in Malawi ∗
, 2013
"... This paper uses a field experiment in Malawi to show that highly skilled women are systematically disadvantaged by referral-based hiring, highlighting another channel behind gender disparities in the labor market. The main reason is that men systematically refer few women. We show this is not becaus ..."
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Cited by 4 (0 self)
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This paper uses a field experiment in Malawi to show that highly skilled women are systematically disadvantaged by referral-based hiring, highlighting another channel behind gender disparities in the labor market. The main reason is that men systematically refer few women. We show this is not because there are too few women who are qualified for the job. Instead we show that factors which are not related to women’s qualifications but are instead due to the social environment – such as men having worse information about women’s abilities and receiving more social benefits from referring men – play a role. Firms cannot just rely on their female employees either since in this context, at least, women referred lower quality candidates. 1
THE VALUE OF HIRING THROUGH EMPLOYEE REFERRALS*
"... Using personnel data from nine large firms in three industries (call centers, trucking, and high-tech), we empirically assess the benefit to firms of hiring through employee referrals. Compared to nonreferred applicants, referred ap-plicants are more likely to be hired and more likely to accept offe ..."
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Using personnel data from nine large firms in three industries (call centers, trucking, and high-tech), we empirically assess the benefit to firms of hiring through employee referrals. Compared to nonreferred applicants, referred ap-plicants are more likely to be hired and more likely to accept offers, even though referrals and nonreferrals have similar skill characteristics. Referred workers tend to have similar productivity compared to nonreferred workers on most measures, but referred workers have lower accident rates in trucking and produce more patents in high-tech. Referred workers are substantially less likely to quit and earn slightly higher wages than nonreferred workers. In call centers and trucking, the two industries for which we can calculate worker-level profits, referred workers yield substantially higher profits per worker than nonreferred workers. These profit differences are driven by lower turnover and lower recruiting costs for referrals. JEL Codes: J24, M51, J30, J63. I.
Manufacturing growth and the lives of Bangladeshi women ☆
"... We study the effects of explosive growth in the Bangladeshi ready-made garments industry on the lives on Bangladeshi women. We compare the marriage, childbearing, school enrollment and employment decisions of women who gain greater access to garment sector jobs to women living further away from fac ..."
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We study the effects of explosive growth in the Bangladeshi ready-made garments industry on the lives on Bangladeshi women. We compare the marriage, childbearing, school enrollment and employment decisions of women who gain greater access to garment sector jobs to women living further away from factories, to years before the factories arrive close to some villages, and to the marriage and enrollment decisions of their male siblings. Girls exposed to the garment sector delay marriage and childbirth. This stems from (a) young girls becoming more likely to be enrolled in school after garment jobs (which reward literacy and numeracy) arrive, and (b) older girls becoming more likely to be employed outside the home in garment-proximate villages. The demand for education generated through manufacturing growth appears to have a much larger effect on female educational attainment compared to a large-scale government conditional cash transfer program to encourage female schooling.
Employee referral, social proximity and worker discipline: Theory and Evidence from India ú
"... We study an important mechanism underlying employee referrals into informal low skilled jobs in developing countries. Employers can exploit social preferences between employee referees and potential workers to improve discipline. The profitability of using referrals increases with referee stakes in ..."
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We study an important mechanism underlying employee referrals into informal low skilled jobs in developing countries. Employers can exploit social preferences between employee referees and potential workers to improve discipline. The profitability of using referrals increases with referee stakes in the firm, and, in most cases, with the strength of the social tie between the referee and the new recruit. We provide an empirical counterpart to these results using primary data covering low- and unskilled migrants in India. Consistent with the theoretical predictions, we find a high prevalence of workplace referral and strong kinship ties between referees and new recruits. Finally, workplace intermediaries are di erent from and typically in more ‘prestigious ’ jobs than those recruited.
Referral System
, 2012
"... This paper presents preliminary findings and is being distributed to economists and other interested readers solely to stimulate discussion and elicit comments. The views expressed in this paper are those of the authors and are not necessarily reflective of views at the Federal Reserve Bank of New Y ..."
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This paper presents preliminary findings and is being distributed to economists and other interested readers solely to stimulate discussion and elicit comments. The views expressed in this paper are those of the authors and are not necessarily reflective of views at the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the authors. Do Informal Referrals Lead to Better Matches? Evidence from a Firm’s Employee
The Role of CowoRkeR-based NeTwoRks iN The labouR MaRkeT
"... In 1974, Mark Granovetter published his highly influ-ential monograph “Getting a Job: A Study of Contacts and Careers ” (Granovetter 1974) in which he showed that in the sample of professional, technical and man- ..."
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In 1974, Mark Granovetter published his highly influ-ential monograph “Getting a Job: A Study of Contacts and Careers ” (Granovetter 1974) in which he showed that in the sample of professional, technical and man-
