Dariel, Aurelie; Riedl, Arno; Siegenthaler, Simon - 2021
-theoretic model and provide results from a laboratory experiment to address these questions. In line with the theoretical predictions …, employers often hire via employee referrals, which in turn mitigates adverse selection and elevates wages. Importantly … offering higher wages, even when hiring on the competitive market. We also find that employers' risk aversion and the dynamic …
