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Appointed Referred Applicants - a Way of Motivating Employees

Author

Listed:
  • Snellman, K.

Abstract

This paper is a study of the function of appointments of referred workers as a way of motivating employees. Earlier research has stressed out that infromation about the ability of the referred applicant can explain why appointments through contacts are made. In this paper it is shown that it can be profitable to appoint new employees according to the suggestions of the old employees even though it means that the employer deliberately appoints applicants with lower ability.

Suggested Citation

  • Snellman, K., 1998. "Appointed Referred Applicants - a Way of Motivating Employees," Papers 98-9, Aarhus School of Business - Department of Economics.
    • Handle: RePEc:fth:aascbu:98-9
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    More about this item

    Keywords

    WAGES ; HUMAN CAPITAL ; RECRUITMENT;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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