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- W3125846127 abstract "This article develops a career-concerns model to examine the screening function of employee referrals. First, I show that employees’ reputational concerns provide them with an incentive to refer high-ability applicants. This result explains how firms that offer fixed payments, rather than bonuses contingent on the referral’s post-hire performance, can elicit high-ability referrals from their employees. Second, I consider the promotion competition as a potential mechanism that creates a conflict of interest between a firm and its employees concerning referral hiring. I show that referrals may still serve a screening function even when the promotion competition distorts employees’ referral decisions." @default.
- W3125846127 created "2021-02-01" @default.
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- W3125846127 date "2016-01-01" @default.
- W3125846127 modified "2023-09-23" @default.
- W3125846127 title "Employee Referrals As a Screening Device" @default.
- W3125846127 hasPublicationYear "2016" @default.
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