Full Citation

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

Citation Type: Journal Article

Publication Year: 2014

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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. 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 stigmaeffects.

Url: https://www.aeaweb.org/articles?id=10.1257/aer.104.3.1014

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Authors: Eriksson, Stefan; Rooth, Dan-Olof

Periodical (Full): American Economic Review

Issue: 3

Volume: 104

Pages: 1014-1039

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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