| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w26806 |
| 来源ID | Working Paper 26806 |
| Network-Based Hiring: Local Benefits; Global Costs | |
| Arun G. Chandrasekhar; Melanie Morten; Alessandra Peter | |
| 发表日期 | 2020-03-02 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | Entrepreneurs, particularly in the developing world, often hire from their networks: friends, family, and resulting referrals. Network hiring has two benefits, documented extensively in the empirical literature: entrepreneurs know more about the ability of their network (and indeed they are often positively selected), and network members may be less likely to engage in moral hazard. We study theoretically how network hiring affects the size and composition (i.e., whether to hire friends or strangers) of the firm. Our primary result is that network hiring, while locally beneficial, can be globally inefficient. Because of the existence of a network, entrepreneurs set inefficiently low wages, firms are weakly too small, rely too much on networks for hiring, and resulting welfare losses increase in the quality of the network. Further, if entrepreneurs are uncertain about the true quality of the external labor market, the economy may become stuck in an information poverty trap where forward-looking entrepreneurs or even entrepreneurs in a market with social learning never learn the correct distribution of stranger ability, exacerbating welfare losses. We show that the poverty trap can worsen when network referrals are of higher quality. |
| 主题 | Microeconomics ; Economics of Information ; Labor Economics ; Labor Market Structures ; Industrial Organization ; Market Structure and Firm Performance ; Development and Growth ; Development |
| URL | https://www.nber.org/papers/w26806 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/584478 |
| 推荐引用方式 GB/T 7714 | Arun G. Chandrasekhar,Melanie Morten,Alessandra Peter. Network-Based Hiring: Local Benefits; Global Costs. 2020. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w26806.pdf（936KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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