Baert, Stijn

Caers, Ralf

De Couck, Marijke

Di Stasio, Valentina

Van Belle, Eva

Abstract: We investigate the signalling effect related to participation in active labor-market programs. To this end, we conduct an experiment in which human resources professionals make hiring decisions concerning fictitious job candidates who apply either under a job-vacancy referral system or directly. We provide first causal evidence for a substantial adverse effect of referral on the probability of being hired. In addition, we find that employers perceive referred candidates as being less motivated than other candidates

The signal of applying for a job under a vacancy referral scheme

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