Referral and Job Performance: Evidence from the Ghana Colonial Army
AbstractAs formalized by Montgomery (1991), referral by employees improves efficiency if the unobserved quality of a new worker is higher than that of unrefereed workers. Using data compiled from army archives, we test whether the referral system in use in the British colonial army in Ghana served to improve the unobserved quality of new recruits. We find that it did not: referred recruits were more likely than unreferred recruits to desert or be dismissed as 'inefficient' or 'unfit'. We find instead evidence of referee opportunism. The fact that referred recruits have better observed characteristics at the time of recruitment suggests that army recruiters may have been aware of this problem.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7408.
Date of creation: Aug 2009
Date of revision:
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Other versions of this item:
- Marcel Fafchamps & Alexander Moradi, 2009. "Referral and Job Performance: Evidence from the Ghana Colonial Army," CSAE Working Paper Series 2009-10, Centre for the Study of African Economies, University of Oxford.
- Marcel Fafchamps & Alexander Moradi, 2009. "Referral and Job Performance: Evidence from the Ghana Colonial Army," Economics Series Working Papers CSAE WPS/2009-10, University of Oxford, Department of Economics.
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
- N47 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Africa; Oceania
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-AFR-2009-11-27 (Africa)
- NEP-ALL-2009-11-27 (All new papers)
- NEP-DEV-2009-11-27 (Development)
- NEP-HIS-2009-11-27 (Business, Economic & Financial History)
- NEP-LAB-2009-11-27 (Labour Economics)
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