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 language | English |
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Pages (from-to) | 251-274 |
Number of pages | 24 |
Journal | Industrial Relations |
Volume | 58 |
Issue number | 2 |
DOIs | |
Publication status | Published - Apr 2019 |
Bibliographical note
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