Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/247910 
Year of Publication: 
2021
Series/Report no.: 
Staff Report No. 987
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
We document a new set of facts regarding the impact of referrals on labor market outcomes. Our results highlight the importance of distinguishing between different types of referrals-those from family and friends and those from business contacts-and different occupations. Then we develop an on-the-job search model that incorporates referrals and calibrate the model to key moments in the data. The calibrated model yields new insights into the roles played by different types of referrals in the match formation process, and provides quantitative estimates of the effects of referrals on employment, earnings, output, and inequality.
Subjects: 
labor markets
referrals
networks
search theory
asymmetric information
JEL: 
E42
E43
E44
E52
E58
Document Type: 
Working Paper

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