A theoretical model of referral-based hiring shows productivity gains alongside inequality and immobility from homophily, plus conditions under which even referral distribution improves outcomes and policy analysis of affirmative action and algorithmic fairness.
By Lemma 6, production before firing is lower under ˜ v′ 1 than under ˜v1 as ˜v <˜v1 < ˜v′
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The Role of Referrals in Immobility, Inequality, and Inefficiency in Labor Markets
A theoretical model of referral-based hiring shows productivity gains alongside inequality and immobility from homophily, plus conditions under which even referral distribution improves outcomes and policy analysis of affirmative action and algorithmic fairness.