The emergence of employer information networks in an experimental labor market

Klarita Gërxhani*, Jordi Brandts, Arthur Schram

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

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.

Original languageEnglish
Pages (from-to)541-560
Number of pages20
JournalSocial Networks
Volume35
Issue number4
DOIs
Publication statusPublished - Oct 2013
Externally publishedYes

Bibliographical note

Funding Information:
Financial support the Spanish Ministerio de Economía y Competitividad (Grant: ECO2011-29847-C02-01 ) the Generalitat de Catalunya (Grant: 2009 SGR 820 ) and NWO (VENI #451-04-106) is gratefully acknowledged. We thank seminar participants at the Free University of Brussels, the University of Innsbruck, the University of Zürich, the University of Munich, the University of Milano-Biccoca, and the University of Lugano for useful comments. We are also grateful to Jeroen Bruggeman, Vincent Buskens, Andreas Diekmann, Roberto Fernandez, Herb Gintis, Ed Lawler, Luis Miller, Aljaž Ule, and Herman van de Werfhorst, for their detailed comments on an earlier draft of this paper. Remaining errors are ours.

Funding

Financial support the Spanish Ministerio de Economía y Competitividad (Grant: ECO2011-29847-C02-01 ) the Generalitat de Catalunya (Grant: 2009 SGR 820 ) and NWO (VENI #451-04-106) is gratefully acknowledged. We thank seminar participants at the Free University of Brussels, the University of Innsbruck, the University of Zürich, the University of Munich, the University of Milano-Biccoca, and the University of Lugano for useful comments. We are also grateful to Jeroen Bruggeman, Vincent Buskens, Andreas Diekmann, Roberto Fernandez, Herb Gintis, Ed Lawler, Luis Miller, Aljaž Ule, and Herman van de Werfhorst, for their detailed comments on an earlier draft of this paper. Remaining errors are ours.

Keywords

  • Experiments
  • Information networks
  • Recruitment

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