Arbeitspapier
Do Informal Referrals Lead to Better Matches? Evidence from a Firm's Employee Referral System
Using a new firm-level dataset that includes explicit information on referrals by current employees, we investigate the hiring process and the relationships among referrals, match quality, wage trajectories and turnover for a single U.S. corporation, and test various predictions of theoretical models of labor market referrals. We find that referred candidates are more likely to be hired; experience an initial wage advantage which dissipates over time; and have longer tenure in the firm. Further, the variances of the referred and non-referred wage distributions converge over time. The observed referral effects appear to be stronger at lower skill levels. The data also permit analysis of the role of referrer-referee pair characteristics.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 8175
- Classification
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Wirtschaft
Wages, Compensation, and Labor Costs: General
Labor Turnover; Vacancies; Layoffs
Unemployment: Models, Duration, Incidence, and Job Search
- Subject
-
referrals
human resources
turnover
wage trajectory
- Event
-
Geistige Schöpfung
- (who)
-
Brown, Meta
Setren, Elizabeth
Topa, Giorgio
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Brown, Meta
- Setren, Elizabeth
- Topa, Giorgio
- Institute for the Study of Labor (IZA)
Time of origin
- 2014
Other Objects (12)
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What Do Employee Referral Programs Do? : Measuring the Direct and Overall Effects of a Management Practice
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Automatic Enrollment, Employer Match Rates and Employee Compensation in 401(k) Plans
Do referral programs increase profits?
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Do informal referrals leads to better matches? Evidence from a firm's employee referral system
Employee Referral, Social Proximity and Worker Discipline: Theory and Evidence from India
Are Informal Self-Employment and Informal Employment as Employee Behaviorally Distinct Labor Force States?
Profits may lead teams to lose matches, but scoring goals does not lead to profit
What Do Employee Referral Programs Do? : Measuring the Direct and Overall Effects of a Management Practice
What do employee referral programs do? Measuring the direct and overall effects of a management practice
Referral Incentives in Crowdfunding
Automatic Enrollment, Employer Match Rates and Employee Compensation in 401(k) Plans
Do referral programs increase profits?
Referral-based job search networks
Referral-based Job Search Networks