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Job Referral Networks and the Determination of Earnings in Local Labor Markets, unpublished paper (2010)
| Venue: | Department of Economics, Cornell University |
| Citations: | 12 - 4 self |
BibTeX
@ARTICLE{Schmutte10jobreferral,
author = {Ian M. Schmutte},
title = {Job Referral Networks and the Determination of Earnings in Local Labor Markets, unpublished paper},
journal = {Department of Economics, Cornell University},
year = {2010},
pages = {696--719}
}
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Abstract
Referral networks affect the efficiency and equity of labor market outcomes, but few studies have been able to identify earnings effects empirically. To make progress, I build a model of on-the-job search in which referral networks channel information about high-paying jobs. I evaluate the model using geographically detailed employer-employee matched data for the U.S. The referral effect is identified by variations in the quality of local referral networks within narrowly defined neighborhoods. I find, consistent with the model, that local referral networks have a positive and significant effect on the full distribution of earnings outcomes from job search.
