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The Signal of Applying for a Job Under a Vacancy Referral Scheme

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  • Eva Van Belle
  • Ralf Caers
  • Marijke De Couck
  • Valentina Di Stasio
  • Stijn Baert

Abstract

We investigate the signalling effect related to participation in active labor‐market programs. To this end, we conduct an experiment in which human resources professionals make hiring decisions concerning fictitious job candidates who apply either under a job‐vacancy referral system or directly. We provide first causal evidence for a substantial adverse effect of referral on the probability of being hired. In addition, we find that employers perceive referred candidates as being less motivated than other candidates.

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  • Eva Van Belle & Ralf Caers & Marijke De Couck & Valentina Di Stasio & Stijn Baert, 2019. "The Signal of Applying for a Job Under a Vacancy Referral Scheme," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(2), pages 251-274, April.
    • Handle: RePEc:bla:indres:v:58:y:2019:i:2:p:251-274
    DOI: 10.1111/irel.12230
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    Cited by:

    1. Van Borm, Hannah & Lippens, Louis & Baert, Stijn, 2022. "An Arab, an Asian, and a Black Guy Walk into a Job Interview: Ethnic Stigma in Hiring after Controlling for Social Class," IZA Discussion Papers 15707, Institute of Labor Economics (IZA).
    2. Van Belle, Eva & Caers, Ralf & Cuypers, Laure & De Couck, Marijke & Neyt, Brecht & Van Borm, Hannah & Baert, Stijn, 2020. "What do student jobs on graduate CVs signal to employers?," Economics of Education Review, Elsevier, vol. 75(C).
    3. Pignatti Clemente & Van Belle Eva, 2021. "Better together: Active and passive labor market policies in developed and developing economies," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-27, January.
    4. Van Borm, Hannah & Burn, Ian & Baert, Stijn, 2021. "What Does a Job Candidate's Age Signal to Employers?," Labour Economics, Elsevier, vol. 71(C).
    5. Dalle, Axana & Sterkens, Philippe & Baert, Stijn, 2023. "A Poisoned Gift? The Hireability Signals of an Income-Support Program for the Senior Unemployed," IZA Discussion Papers 16057, Institute of Labor Economics (IZA).
    6. Tamara Gutfleisch & Robin Samuel & Stefan Sacchi, 2021. "The application of factorial surveys to study recruiters’ hiring intentions: comparing designs based on hypothetical and real vacancies," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(3), pages 775-804, June.
    7. Cantet, Natalia & Feld, Brian & Hernández, Mónica, 2024. "Is there discrimination against children of same-sex households? Evidence from an experimental study in Colombia," Labour Economics, Elsevier, vol. 87(C).
    8. Van Borm, Hannah & Baert, Stijn, 2022. "Diving in the Minds of Recruiters: What Triggers Gender Stereotypes in Hiring?," IZA Discussion Papers 15261, Institute of Labor Economics (IZA).
    9. Ilse Tobback & Dieter Verhaest & Stijn Baert, 2020. "Student Access to Apprenticeships: Evidence from a Vignette Experiment," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(3), pages 435-465, July.

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    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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