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Competitive Job Seekers: When Sharing Less Leaves Firms at a Loss

Author

Listed:
  • Chiplunkar, Gaurav

    (University of Virginia)

  • Kelley, Erin

    (World Bank)

  • Lane, Gregory

    (University of Chicago)

Abstract

We study how job-seekers share information about jobs within their social network, and its implications for firms. We randomly increase the amount of competition for a job and find that job-seekers are less likely to share information about the job with their high ability peers. This lowers the quality of applicants, hires, and performance on the job - suggesting that firms who disseminate job information through social networks may see lower quality applicants than expected for their most competitive positions. While randomly offering higher wages attracts better talent, it is not able to fully overcome these strategic disincentives in information sharing.

Suggested Citation

  • Chiplunkar, Gaurav & Kelley, Erin & Lane, Gregory, 2024. "Competitive Job Seekers: When Sharing Less Leaves Firms at a Loss," IZA Discussion Papers 16840, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp16840
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    References listed on IDEAS

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    7. Cátia Batista & Marcel Fafchamps & Pedro C. Vicente, 2018. "Keep It Simple: A Field Experiment on Information Sharing in Social Networks," NBER Working Papers 24908, National Bureau of Economic Research, Inc.
    8. Jeffrey A. Flory & Andreas Leibbrandt & John A. List, 2015. "Do Competitive Workplaces Deter Female Workers? A Large-Scale Natural Field Experiment on Job Entry Decisions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(1), pages 122-155.
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    Cited by:

    1. Elena Ashtari Tafti & Mimosa Distefano & Tetyana Surovtseva, 2024. "Gender, careers and peers' gender mix," CEP Discussion Papers dp2008, Centre for Economic Performance, LSE.

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    Keywords

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    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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