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Information, Mobile Communication, and Referral Effects

Author

Listed:
  • Panle Jia Barwick
  • Yanyan Liu
  • Eleonora Patacchini
  • Qi Wu

Abstract

This paper uses the universe of cellphone records from a Chinese telecommunication provider for a northern Chinese city to examine the role of information exchange in urban labor markets. We provide the first direct evidence of increased communication among referral pairs around job changes. Information provided by social contacts mitigates information asymmetry and improves labor market performance.

Suggested Citation

  • Panle Jia Barwick & Yanyan Liu & Eleonora Patacchini & Qi Wu, 2023. "Information, Mobile Communication, and Referral Effects," American Economic Review, American Economic Association, vol. 113(5), pages 1170-1207, May.
    • Handle: RePEc:aea:aecrev:v:113:y:2023:i:5:p:1170-1207
    DOI: 10.1257/aer.20200187
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    References listed on IDEAS

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    1. Dai, R. & Mookherjee, D. & Munshi, K. & Zhang, X., 2018. "Community Networks and the Growth of Private Enterprise in China," Cambridge Working Papers in Economics 1850, Faculty of Economics, University of Cambridge.
    2. Hongbin Cai & Hanming Fang & Lixin Colin Xu, 2011. "Eat, Drink, Firms, Government: An Investigation of Corruption from the Entertainment and Travel Costs of Chinese Firms," Journal of Law and Economics, University of Chicago Press, vol. 54(1), pages 55-78.
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    Cited by:

    1. Weixin Yang & Chen Zhu & Yunpeng Yang, 2024. "Does Urban Digital Construction Promote Economic Growth? Evidence from China," Economies, MDPI, vol. 12(3), pages 1-34, February.

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    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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