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Information disclosure and job search: evidence from a social networks experiment

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  • Z. K. Dong
  • D. S. Huang
  • F. F. Tang

Abstract

We report the results of an experiment that determined the importance of an information disclosure policy in job search behaviour. We controlled the level of employment information disclosed after every experimental round. When we announced the subjects' wage levels, which at that point they had accepted along with their counterparts in a social network, the subjects' average reservation wages increased significantly according to their initial preference. However, when this information was not revealed, the reservation wage remained the same despite the availability of the social network. We suggest that the green-eyed monster effect may be significant in explaining these results.

Suggested Citation

  • Z. K. Dong & D. S. Huang & F. F. Tang, 2014. "Information disclosure and job search: evidence from a social networks experiment," Applied Economics Letters, Taylor & Francis Journals, vol. 21(4), pages 293-296, March.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:4:p:293-296
    DOI: 10.1080/13504851.2013.856992
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    References listed on IDEAS

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    1. Lori Beaman & Jeremy Magruder, 2012. "Who Gets the Job Referral? Evidence from a Social Networks Experiment," American Economic Review, American Economic Association, vol. 102(7), pages 3574-3593, December.
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    4. Dufwenberg, Martin & Gneezy, Uri, 2002. "Information disclosure in auctions: an experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 48(4), pages 431-444, August.
    5. Cox, James C & Oaxaca, Ronald L, 1989. "Laboratory Experiments with a Finite-Horizon Job-Search Model," Journal of Risk and Uncertainty, Springer, vol. 2(3), pages 301-329, September.
    6. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, vol. 94(3), pages 426-454, June.
    7. Marmaros, David & Sacerdote, Bruce, 2002. "Peer and social networks in job search," European Economic Review, Elsevier, vol. 46(4-5), pages 870-879, May.
    8. Linda Datcher Loury, 2006. "Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 299-318, April.
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    Cited by:

    1. Wang, Chunchao & Zhang, Chenglei & Ni, Jinlan, 2015. "Social network, intra-network education spillover effect and rural–urban migrants' wages: Evidence from China," China Economic Review, Elsevier, vol. 35(C), pages 156-168.

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