This paper develops a model and derives novel testable implications of referral-based job search networks in which … firm. These findings have important implications in suggesting that job search networks help to reduce informational …

Using a new firm-level dataset that includes explicit information on referrals by current employees, we investigate the … hiring process and the relationships among referrals, match quality, wage trajectories and turnover for a single U ….S. corporation, and test various predictions of theoretical models of labor market referrals. We find that referred candidates are …

Employee referrals are a very common means by which firms hire new workers. Past work suggests that workers hired via … referrals often perform better than non-referred workers, but we have little understanding as to why. In this paper, we … demonstrate that this is primarily because referrals allow firms to select workers better-suited for particular jobs. To test our …