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Who Gets Hired? The Strength of Weak Ties and the Signaling of Strong Ties

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  • Safi, Shahir
  • Zenou, Yves

Abstract

This paper presents a model of referrals in which strong ties serve as a signaling mechanism, allowing employees to convey private information about referred workers. Matching occurs through three channels: strong ties (partially informative), weak ties (uninformative but frictionless), and formal screening in the market (fully informative but frictional). Low-skill workers use weak ties to avoid revealing their type, helping reconcile two stylized facts: Granovetter1973's strength of weak ties and the prevalence of referrals in low-skill jobs. The model also reveals a complementarity between weak and strong ties: conditional on having a strong-tie offer, returns to weak ties are positive and increasing in worker skill.

Suggested Citation

  • Safi, Shahir & Zenou, Yves, 2025. "Who Gets Hired? The Strength of Weak Ties and the Signaling of Strong Ties," CEPR Discussion Papers 20891, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:20891
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