The Dynamics of Referral Hiring and Racial Inequality: Evidence from Brazil / Conrad Miller, Ian M. Schmutte.

Format:

Book

Author/Creator:

Miller, Conrad.

Contributor:

National Bureau of Economic Research.

Schmutte, Ian M.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29246.

NBER working paper series no. w29246

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2021.

Summary:

We study how referral hiring contributes to racial inequality in firm-level labor demand over the firm's life cycle using data from Brazil. We consider a search model where referral networks are segregated, firms are more informed about the match quality of referred candidates, and some referrals are made by non-referred employees. Consistent with the model, we find that firms are more likely to hire candidates and less likely to dismiss employees of the same race as the founder, but these differences diminish as firms' cumulative hires increase. Referral hiring helps to explain racial differences in dismissals, seniority, and employer size.

Notes:

Print version record

September 2021.