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The informal recruitment channel and the quality of job-worker matches: an analysis on Italian survey data


  • Valentina Meliciani
  • Debora Radicchia


This article analyzes the consequences of being recruited through the informal channel in the Italian labor market using data collected through a new survey implemented by Institute for the Development of the Vocational Training of Workers--ISFOL. We find that, while workers entering the labor market via "professional ties" enjoy a wage bonus and a reduction in entry times, those recruited via "family and friends" referrals save on entry times but receive on average lower wages. Moreover, the use of the family channel reduces the returns to education and is associated with the phenomenon of "over-education," suggesting the existence of some mismatches between workers' and jobs' characteristics. Copyright 2011 The Author 2010. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

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  • Valentina Meliciani & Debora Radicchia, 2011. "The informal recruitment channel and the quality of job-worker matches: an analysis on Italian survey data," Industrial and Corporate Change, Oxford University Press, vol. 20(2), pages 511-554, April.
  • Handle: RePEc:oup:indcch:v:20:y:2011:i:2:p:511-554

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    References listed on IDEAS

    1. Nathan ROSENBERG, 2009. "Why do firms do basic research (with their own money)?," World Scientific Book Chapters,in: Studies On Science And The Innovation Process Selected Works of Nathan Rosenberg, chapter 11, pages 225-234 World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Zaharieva, Anna, 2013. "Social welfare and wage inequality in search equilibrium with personal contacts," Labour Economics, Elsevier, vol. 23(C), pages 107-121.
    2. Berloffa Gabriella & Modena Francesca & Villa Paola, 2014. "Changing Labour Market Opportunities for Young People in Italy and the Role of the Family of Origin," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 227-252.
    3. Valentina Meliciani & Debora Radicchia, 2016. "Overeducation and overskill in the Italian labour market: the role of fields of study," Working Papers 33, Birkbeck Centre for Innovation Management Research, revised Jul 2016.
    4. Andrea Filippetti & Frederick Guy & Simona Iammarino, 2015. "Does training help in times of crisis? Training in employment in Northern and Southern Italy," Working Papers 28, Birkbeck Centre for Innovation Management Research, revised Dec 2015.
    5. Stupnytska, Yuliia & Zaharieva, Anna, 2015. "Explaining U-shape of the referral hiring pattern in a search model with heterogeneous workers," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 211-233.
    6. Valentina Meliciani & Debora Radicchia, 2014. "Informal Network, Spatial Mobility and Overeducation in the Italian Labour Market," Working Papers 19, Birkbeck Centre for Innovation Management Research, revised Nov 2014.
    7. Valentina Meliciani & Debora Radicchia, 2016. "Informal networks, spatial mobility and overeducation in the Italian labour market," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 513-535, March.
    8. Stupnytska, Yuliia & Zaharieva, Anna, 2015. "Explaining the U-Shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers," Center for Mathematical Economics Working Papers 511, Center for Mathematical Economics, Bielefeld University.

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