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Competitive Job Seekers: When Sharing Less Leaves Firms at a Loss

Author

Listed:
  • Chiplunkar, Gaurav

    (University of Virginia)

  • Kelley, Erin

    (World Bank)

  • Lane, Gregory

    (University of Chicago)

Abstract

We study how job-seekers share information about jobs within their social network, and its implications for firms. We randomly increase the amount of competition for a job and find that job-seekers are less likely to share information about the job with their high ability peers. This lowers the quality of applicants, hires, and performance on the job - suggesting that firms who disseminate job information through social networks may see lower quality applicants than expected for their most competitive positions. While randomly offering higher wages attracts better talent, it is not able to fully overcome these strategic disincentives in information sharing.

Suggested Citation

  • Chiplunkar, Gaurav & Kelley, Erin & Lane, Gregory, 2024. "Competitive Job Seekers: When Sharing Less Leaves Firms at a Loss," IZA Discussion Papers 16840, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16840
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    References listed on IDEAS

    as
    1. Lori Beaman & Jeremy Magruder, 2012. "Who Gets the Job Referral? Evidence from a Social Networks Experiment," American Economic Review, American Economic Association, vol. 102(7), pages 3574-3593, December.
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    3. Cátia Batista & Marcel Fafchamps & Pedro C. Vicente, 2018. "Keep It Simple: A Field Experiment on Information Sharing in Social Networks," NBER Working Papers 24908, National Bureau of Economic Research, Inc.
    4. Jeffrey A. Flory & Andreas Leibbrandt & John A. List, 2015. "Do Competitive Workplaces Deter Female Workers? A Large-Scale Natural Field Experiment on Job Entry Decisions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(1), pages 122-155.
    5. Conrad Miller & Ian M. Schmutte, 2021. "The Dynamics of Referral Hiring and Racial Inequality: Evidence from Brazil," NBER Working Papers 29246, National Bureau of Economic Research, Inc.
    6. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-1418, December.
    7. Crepon,Bruno Jacques Jean Philippe & Premand,Patrick, 2018. "Creating new positions ? direct and indirect effects of a subsidized apprenticeship program," Policy Research Working Paper Series 8561, The World Bank.
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    More about this item

    Keywords

    job information; social networks; labor markets;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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