Informal hiring channels

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Matching to First Jobs – Informal hiring channels are more important in the job matching process during recessions than in booms

A large and active empirical literature has asserted that informal hiring channels can provide firms with information about worker qualities. Informal hiring channels mitigate the inherent uncertainty faced by recruiting firms and thus reduce firm-level hiring costs. But the existence of informal hiring channels may also dampen aggregate labor market fluctuations if recessions provide firms … Continue reading

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