Do Employers Use Unemployment as a Sorting Criterion When Hiring? Evidence from a Field Experiment
Abstract
The stigma associated with long-term unemployment spells could create large inefficiencies in labor markets. While the existing literature points toward large stigma effects, it has proven difficult to estimate causal relationships. Using data from a field experiment, we find that long-term unemployment spells in the past do not matter for employers' hiring decisions, suggesting that subsequent work experience eliminates this negative signal....
Paper Details
Title
Do Employers Use Unemployment as a Sorting Criterion When Hiring? Evidence from a Field Experiment
Published Date
Mar 1, 2014
Journal
Volume
104
Issue
3
Pages
1014 - 1039
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