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Participants acquiring work experience and a reference letter were 7.9 percentage points less likely to submit a reference letter when applying for jobs (IV coefficient = -0.079, standard error = 0.110) and reduced the total number of times a reference letter was submitted by 0.381 times.
Acquiring experimentally induced work experience reduced the probability of submitting a reference letter by 7.9 percentage points (p > 0.10) and decreased the frequency of reference letter submissions by 0.381 times, demonstrating that formal signaling via reference letters did not drive the observed wage gains.
Standardized reference letters significantly increased employment rates for female applicants in South Africa while having no effect on men, correcting employer baseline bias against women's reported skills [4]. In the United States, reference letters increased employability and earnings sustained over a four-year follow-up period [4, 5]. Algorithmic writing assistance on resumes increased hiring probabilities by 8 percent in online labor markets [6].
Youth receiving automated recommendation letters earned US$1,349 more cumulatively across four years and stayed in jobs 0.36 months longer. In South Africa, women using reference templates saw higher application review rates and increased 3-month employment rates, closing gender hiring gaps.