This paper develops a model and derives novel testable implications of referral-based job search networks in which employees provide employers with information about potential job market candidates that they otherwise would not have. Using unique matched employer-employee data that cover the...

Workers with lower socio-economic status more frequently use social networks to get jobs. This negative self-selection is not well accounted for by existing theories. We present a model that explains why it occurs. When social networks are connected to mismatched occupations, workers with fewer...