Heather Sarsons - University of Chicago

Interpreting Signals in the Labor Market: Evidence from Medical Referrals

Abstract:  This paper provides evidence that a person’s gender influences the way others interpret information about his or her ability. Using data on physicians’ referrals to surgeons, I find that physicians become more pessimistic about a female surgeon’s ability than a male’s after a patient death, indicated by a sharper drop in referrals to the female surgeon. However, physicians become more optimistic about a male surgeon’s ability after a good outcome, indicated by a larger increase in the referrals to the man. After a bad experience with one female surgeon, physicians also become less likely to refer to other female surgeons.