The emergence of employer information networks in an experimental labor market |
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Authors: | Klarita Gë rxhani,Jordi Brandts,Arthur Schram |
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Affiliation: | 1. Department of Sociology, Amsterdam Centre for Inequality Studies, University of Amsterdam, Oudezijds Achterburgwal 185, 1012 DK Amsterdam, The Netherlands;2. Department of Business Economics, U. Autònoma de Barcelona, Institut d’Anàlisi Econòmica (CSIC) and Barcelona GSE, Campus UAB, 08193 Bellaterra, Barcelona, Spain;3. CREED, Amsterdam School of Economics, University of Amsterdam, Roetersstraat 11, 1018 WB Amsterdam, The Netherlands |
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Abstract: | We use laboratory experiments to investigate whether employer networks emerge that facilitate information sharing about the trustworthiness of job candidates. The design allows us to distinguish between mechanisms underlying the relations among employers and those between employers and workers. One type of network we observe is an ‘anonymity network’ where information is anonymously and voluntarily provided as a collective good for all employers to use. The other type is a ‘reciprocity network’ where information sharing is driven by the rewarding of previously given information by the requestor. Recruitment through these networks leads to higher earnings for both employers and workers. |
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Keywords: | Information networks Recruitment Experiments |
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