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Do Employers Use Unemployment as a Sorting Criterion When Hiring?: Evidence from a Field Experiment
Uppsala University.
Linnaeus University, School of Business and Economics, Department of Economics and Statistics.
2014 (English)In: The American Economic Review, ISSN 0002-8282, E-ISSN 1944-7981, Vol. 104, no 3, 1014-1039 p.Article in journal (Refereed) Published
Abstract [en]

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. Nor do employers treat contemporary short-term unemployment spells differently, suggesting that they understand that worker/firm matching takes time. However, employers attach a negative value to contemporary unemployment spells lasting at least nine months, providing evidence of stigma effects.

Place, publisher, year, edition, pages
2014. Vol. 104, no 3, 1014-1039 p.
National Category
Economics and Business
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-34480DOI: 10.1257/aer.104.3.1014ISI: 000334497800010OAI: oai:DiVA.org:lnu-34480DiVA: diva2:720329
Available from: 2014-05-28 Created: 2014-05-28 Last updated: 2014-05-28Bibliographically approved

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Rooth, Dan-Olof
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CiteExportLink to record
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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
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More styles
Language
  • de-DE
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  • Other locale
More languages
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