The Value of Reference Letters
This paper shows that reference letters from former employers alleviate information asymmetries about workers' skills and improve both match quality and equity in the labor market. A resume audit study finds that using a reference letter in th...
| Main Authors: | , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/632421513000919521/The-value-of-reference-letters http://hdl.handle.net/10986/29002 |
| Summary: | This paper shows that reference letters
from former employers alleviate information asymmetries
about workers' skills and improve both match quality
and equity in the labor market. A resume audit study finds
that using a reference letter in the application increases
callbacks by more than 60 percent, with women driving 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, employment
rates for women encouraged to obtain a letter increase by 49
percent, closing the gender gap in the sample. |
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