Abstract
"Who is more likely to use social contacts to search for jobs, and why is this the case? Despite substantial evidence that social contacts improve individuals’ success in the process of job-seeking in various ways, previous studies point out that individuals with more social capital are not more likely to use social contacts to search for jobs than those with less social capital. By using records of job search activities on an online hiring platform, this paper seeks to explore variations in job seekers’ decisions to use recommendation letters in their job search process as well as their implications. Specifically, I propose that female applicants who may face bias, and hence, feel disadvantaged in the labor market utilize recommendation letters more than male applicants. I also posit that when recommendation letters are used, their effect is more substantial for female applicants than for male applicants in positively affecting their job search outcomes. The results suggest that female applicants use recommendation letters as a mitigation strategy for their labor market disadvantage while also providing additional information; thus, signaling the applicants’ qualities in the job search process."