The Missing Link: Social Infrastructure and Employers' Use of Information

Shazia Raffiullah Miller and James E. Rosenbaum

IPR working papers from Institute for Policy Resarch at Northwestern University

Abstract: What information do employers use in hiring entry-level workers? In contrast with the expectations of economic theory, research finds that employers make hiring decisions without using information about high school students' skills. From interviews with a sample of 51 urban and suburban employers, we find that while employers receive much information, they mistrust the dependability and usefulness of information from nearly all sources. This leads them to rely on information they gather in interviews, a method prone to racial and cultural biases and ill-suited to their stated needs for academic skills and work habits. We suggest that for economic theory to operate, employers must not only receive information, they must receive it in a form that assures trustworthiness and relevance. We find that some employers get school information from long-term social networks which provide just such assurances, and these employers use this information. While much sociological research has shown how workers use networks to learn about possible jobs, this study is one of the first to indicate how employers use networks in recruiting, and it indicates how networks make information trusted. We conclude with some implications for theory and policy.

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