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Information disclosure and job search: evidence from a social networks experiment

Z. K. Dong, D. S. Huang and F. F. Tang

Applied Economics Letters, 2014, vol. 21, issue 4, 293-296

Abstract: We report the results of an experiment that determined the importance of an information disclosure policy in job search behaviour. We controlled the level of employment information disclosed after every experimental round. When we announced the subjects' wage levels, which at that point they had accepted along with their counterparts in a social network, the subjects' average reservation wages increased significantly according to their initial preference. However, when this information was not revealed, the reservation wage remained the same despite the availability of the social network. We suggest that the green-eyed monster effect may be significant in explaining these results.

Date: 2014
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DOI: 10.1080/13504851.2013.856992

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