Eleonora Patacchini

Face-to-Face Meetings, Referrals, and Hiring

We study the impact of face-to-face interactions with preexisting social connections in the workplace —commonly known as referrals—on worker mobility. Using detailed cellphone geolocation data and sociodemographic information for 3.3 million workers in a large urban labor market over two years, we find that in-person meetings can double the positive effects of referrals on job movement. These interactions yield higher returns than other communication methods, such as phone calls and messaging apps. The benefits are particularly pronounced for women, migrants, full-time employees, high-income earners, private sector workers, and individuals transitioning from the IT, finance, and manufacturing industries. Our analysis reveals that a higher frequency of meetings drives the premium observed among women, high-income job switchers, and private sector employees, while the composition of these meetings is crucial to explaining the premium for migrants, full-time workers, and employees in specific industries. Diversity in the composition of in-person meetings does not enhance worker mobility.