The Value of Reference Letters: Experimental Evidence from South Africa

Martin Abel, Rulof Burger and Patrizio Piraino

American Economic Journal: Applied Economics, 2020, vol. 12, issue 3, 40-71

Abstract: We show that reference letters from former employers alleviate information frictions in a low-skill labor market, improving applicant screening and gender equity. A resume audit study finds that using a reference letter in the application increases callbacks by 60 percent. Women drive the effect. Letters are effective because they provide valuable information about workers' skills that employers use to select applicants of higher ability. A second experiment, which encourages job seekers to obtain and use a reference letter, finds consistent results. In particular, reference letters raise job interviews and employment for women.

JEL-codes: D83 J16 J24 J64 O12 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (35)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/app.20180666 (application/pdf)
https://www.aeaweb.org/doi/10.1257/app.20180666.data (application/zip)
https://www.aeaweb.org/doi/10.1257/app.20180666.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aejapp:v:12:y:2020:i:3:p:40-71

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

DOI: 10.1257/app.20180666

Access Statistics for this article

American Economic Journal: Applied Economics is currently edited by Alexandre Mas

More articles in American Economic Journal: Applied Economics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().