Hiring through referrals
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.
When requesting a correction, please mention this item's handle: RePEc:eee:jetheo:v:152:y:2014:i:c:p:304-323. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.