Information, Mobile Communication, and Referral Effects
Panle Barwick (),
Yanyan Liu (),
Eleonora Patacchini and
No 25873, NBER Working Papers from National Bureau of Economic Research, Inc
We use the universe of de-identiﬁed and geocoded cellphone records for 1.8 million individuals from a major Chinese telecommunication provider to examine the role of information exchange in urban labor markets. Information ﬂow, as measured by call volume, correlates strongly with worker ﬂows at diﬀerent levels of geographic aggregation. Having a referral in a location increases by close to four times the likelihood that a job switcher moves there. Diﬀerent from the communication pattern between nonreferral pairs, communication between referral pairs exhibits a distinct inverted-U shape that peaks prior to the job switch. Compared with our referral measure, the commonly-used social network proxies deliver a lower bound estimate of the referral eﬀect. We supplement the phone records with administrative data on ﬁrm attributes and auxiliary data on job postings and residential housing prices. Referred jobs are associated with higher monetary gains, a higher likelihood to transition from part time to full time, reduced commuting time, and a higher probability of entering desirable jobs. Referral information is more valuable for young workers, people switching jobs from suburbs to the inner city, and those changing their industrial sectors. Firms receiving referred workers are associated with more successful recruits, higher matching rates and faster growth.
JEL-codes: J60 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab, nep-pay and nep-ure
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Working Paper: Information, Mobile Communication, and Referral Effects (2019)
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