Screening Minersf Skills: Coal Industry Recruitment in Early Twentieth Century Japan
Referral hiring has been a practical solution to the problem of adverse selection in the labor market and, as a result, increasingly attracts interest from economic researchers. This study argues that firms use referral hiring when workersf skills are too complicated for employees in the human resources division to be able to decide on the appropriateness of a candidate. In the 1900s, coal mining firms used referral hiring to screen workers. We focus on the recruitment of miners and study the experience of a coal mine in the 1900s, analyzing employment contracts. Our theoretical predictions argue that workers with traditional manual skills were hired with using referral hiring and unskilled workers and workers with modernized skills were hired directly by firms, not using referral hiring. Our empirical analysis is consistent with the prediction.
|Date of creation:||30 Oct 2013|
|Date of revision:||27 Jan 2014|
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- 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 3574-93, December.
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