The AEA is providing open access to all journal content on the AEA website through June 2020 to overcome any difficulties some may have accessing library subscriptions during these challenging times.
The AEA is providing open access to all journal content on the AEA website through June 2020 to overcome any difficulties some may have accessing library subscriptions during these challenging times.
We show that reference letters from former employers alleviate
information frictions in a low-skill labor market, improving applicant
screening and gender equity. A resume audit study finds that
using a reference letter in the application increases callbacks by
60%. Women drive 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, reference letters raise job
interviews and employment for women.
