Information asymmetries can prevent markets from operating efficiently. An important example is the labor market, where employers face uncertainty about the productivity of job candidates. We examine theoretically and with laboratory experiments three key questions related to hiring via...

Information asymmetries can prevent markets from operating efficiently. An important example is the labor market, where employers face uncertainty about the productivity of job candidates. We examine theoretically and with laboratory experiments three key questions related to hiring via...

This paper proposes a simple social network model of occupational segregation, generated by the existence of inbreeding bias among individuals of the same social group. If network referrals are important in getting a job, then expected inbreeding bias in the social structure results in different...

The aim of this paper is to provide a new mechanism based on social interactions explaining why distance to jobs can have a negative impact on workers' labor-market outcomes, especially ethnic minorities. Building on Granovetter's idea that weak ties are superior to strong ties for providing...

The most commonly used model of labor market incorporation among immigrants in the United States analyzes their earnings largely as a function of human capital variables such as education, language competence, age, length of residence and employment experience in the receiving country. However,...