. Firms also acquire entrants with higher ability scores but lower schooling when hiring linked workers supporting the notion …

frictions and non-random hiring that is consistent with novel empirical evidence presented. In this framework, undocumented …

. This explains the U-shaped referral hiring pattern in the model. The endogenous sorting of workers across channels also …

professional networks. Our model explains a U-shape referral hiring pattern observed in empirical studies and a strong selection of …

-sided heterogeneity, multiple search channels and endogenous recruitment effort. The estimation reveals that networks are the most cost … channel, facilitate hiring workers of higher ability, and matter most for worker-firm sorting. Although the public employment … agency provides the lowest hiring probability, its removal has sizeable consequences, with aggregate employment declining by …