Explaining U-shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers

Stupnytska Y, Zaharieva A (2015)
Journal of Economic Behavior & Organization 119: 211-233.

Journal Article | Published | English

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Abstract
This paper presents a search model with heterogeneous workers, social networks and endogenous search intensity. There are three job search channels: costly formal applications and two costless informal channels – through family and professional networks. Our model explains a U-shape referral hiring pattern observed in empirical studies and a strong selection of workers on productivity across the three channels. Moreover, combining family and professional referrals into one informal channel may generate a spurious result of wage premiums (penalties) if high (low) productivity workers are dominating in the empirical data and their productivity is not fully observable to the econometrician.
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Stupnytska Y, Zaharieva A. Explaining U-shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers. Journal of Economic Behavior & Organization. 2015;119:211-233.
Stupnytska, Y., & Zaharieva, A. (2015). Explaining U-shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers. Journal of Economic Behavior & Organization, 119, 211-233.
Stupnytska, Y., and Zaharieva, A. (2015). Explaining U-shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers. Journal of Economic Behavior & Organization 119, 211-233.
Stupnytska, Y., & Zaharieva, A., 2015. Explaining U-shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers. Journal of Economic Behavior & Organization, 119, p 211-233.
Y. Stupnytska and A. Zaharieva, “Explaining U-shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers”, Journal of Economic Behavior & Organization, vol. 119, 2015, pp. 211-233.
Stupnytska, Y., Zaharieva, A.: Explaining U-shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers. Journal of Economic Behavior & Organization. 119, 211-233 (2015).
Stupnytska, Yuliia, and Zaharieva, Anna. “Explaining U-shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers”. Journal of Economic Behavior & Organization 119 (2015): 211-233.
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