Referral-Based Job Search Networks
By Christian Dustmann, A. Glitz, Uta Schönberg. Social Science Research Network, 2016
378 citations recorded by the source corpus.
This article 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 labour 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 labour market and lead to productivity gains for workers and firms.
Subfields: Economics and Econometrics, Education, Public Administration
View Paper: https://www.semanticscholar.org/paper/c54a85116561123afcf87e4a2aa12afd6f59c1fe
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- Anna Piil Damm
- Mark J. Kutzbach
- David Neumark
- J. Hellerstein
- Lawrence M. Kahn
- Francine D. Blau
- W. Strange
- Stuart S. Rosenthal
In Education
In Public Administration
Citations in the corpus
- Do Labor Market Networks Have an Important Spatial Dimension (2013, positive): “We begin by estimating linear probability models similar to Dustmann et al. (2011), with retention depending not on any network measure per se, but on the share of the employer’s workforce that is of the same race or ethnic group, as in: (4) Rijt = α + βGSjt + γBBijt + γHHijt + γAAijt + Xijtθ + εijt”
- Neighborhood Quality and Labor Market Outcomes: Evidence from Quasi-Random Neighborhood Assignment of Immigrants (2013, background): “Dustmann et al. (2011) find that employment through referral is associated with a short-termwage premium.”