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Do Employers Use Unemployment as a Sorting Criterion When Hiring? Evidence from a Field Experiment

In English

Författare

  • Stefan Eriksson
  • Dan-Olof Rooth

Summary, in English

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.

Publiceringsår

2014

Språk

Engelska

Sidor

1014-1039

Publikation/Tidskrift/Serie

The American Economic Review

Volym

104

Issue

3

Dokumenttyp

Artikel i tidskrift

Förlag

American Economic Association

Ämne

  • Economic History

Status

Published

ISBN/ISSN/Övrigt

  • ISSN: 0002-8282