Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98963
Authors: 
Brown, Meta
Setren, Elizabeth
Topa, Giorgio
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8175
Abstract: 
Using a new firm-level dataset that includes explicit information on referrals by current employees, we investigate the hiring process and the relationships among referrals, match quality, wage trajectories and turnover for a single U.S. corporation, and test various predictions of theoretical models of labor market referrals. We find that referred candidates are more likely to be hired; experience an initial wage advantage which dissipates over time; and have longer tenure in the firm. Further, the variances of the referred and non-referred wage distributions converge over time. The observed referral effects appear to be stronger at lower skill levels. The data also permit analysis of the role of referrer-referee pair characteristics.
Subjects: 
referrals
human resources
turnover
wage trajectory
JEL: 
J30
J63
J64
Document Type: 
Working Paper

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