Appointed Referred Applicants - a Way of Motivating Employees

K. Snellman

Working Papers from Aarhus School of Business - Department of Economics

Abstract: This paper is a study of the function of appointments of referred workers as a way of motivating employees. Earlier research has stressed out that infromation about the ability of the referred applicant can explain why appointments through contacts are made. In this paper it is shown that it can be profitable to appoint new employees according to the suggestions of the old employees even though it means that the employer deliberately appoints applicants with lower ability.

Keywords: WAGES; HUMAN CAPITAL; RECRUITMENT (search for similar items in EconPapers)
JEL-codes: D23 J33 J41 (search for similar items in EconPapers)
Pages: 18 pages
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:fth:aascbu:98-9

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