The Signal of Applying for a Job Under a Vacancy Referral Scheme

Eva Van Belle, Ralf Caers, Marijke De Couck, Valentina Di Stasio, Stijn Baert*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

We investigate the signalling effect related to participation in active labor-market programs. To this end, we conduct an experiment in which human resources professionals make hiring decisions concerning fictitious job candidates who apply either under a job-vacancy referral system or directly. We provide first causal evidence for a substantial adverse effect of referral on the probability of being hired. In addition, we find that employers perceive referred candidates as being less motivated than other candidates.

Original languageEnglish
Pages (from-to)251-274
Number of pages24
JournalIndustrial Relations
Volume58
Issue number2
DOIs
Publication statusPublished - Apr 2019

Bibliographical note

Publisher Copyright:
© 2019 The Regents of the University of California

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