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.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 8175

Klassifikation
Wirtschaft
Wages, Compensation, and Labor Costs: General
Labor Turnover; Vacancies; Layoffs
Unemployment: Models, Duration, Incidence, and Job Search
Thema
referrals
human resources
turnover
wage trajectory

Ereignis
Geistige Schöpfung
(wer)
Brown, Meta
Setren, Elizabeth
Topa, Giorgio
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Brown, Meta
  • Setren, Elizabeth
  • Topa, Giorgio
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2014

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