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Hiring through referrals

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  • Galenianos, Manolis
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    Abstract

    An equilibrium search model of the labor market is combined with a social network. The key features are that the workers' network transmits information about jobs and that wages and firm entry are determined endogenously. Empirically, the inter-industry variation in aggregate matching efficiency is attributed to variation in referral use. The model predicts that the efficiency of the aggregate matching function is pro-cyclical which is consistent with empirical evidence.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Theory.

    Volume (Year): 152 (2014)
    Issue (Month): C ()
    Pages: 304-323

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    Handle: RePEc:eee:jetheo:v:152:y:2014:i:c:p:304-323

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    Web page: http://www.elsevier.com/locate/inca/622869

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    Keywords: Search; Referrals; Social networks;

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