Formal Search and Referrals from a Firm's Perspective

Abstract

"We explore the relationship between firms' characteristics and recruitment strategies. We present a theoretical search model with two search channels: a costly formal channel and a costless informal channel (referrals). We empirically test the model predictions and find that: larger firms search more formally; firms search more formally for high‐skilled workers; the positive relationship between firm's size and formal search intensity also holds for firms not using referrals; firms using referrals invest less into formal search compared to firms not using referrals; larger firms hire less often by referrals than smaller firms; and larger search effort leads to more applicants." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

Cite article

Rebien, M., Stops, M. & Zaharieva, A. (2020): Formal Search and Referrals from a Firm's Perspective. In: International Economic Review, Vol. 61, No. 4, p. 1679-1748., accepted on June 08, 2020. DOI:10.1111/iere.12477