On the effects of ranking by unemployment duration

We propose a theory based on the firm's hiring behavior that rationalizes the observed significant decline of callback rates for an interview and exit rates from unemployment and the mild decline of reemployment wages over unemployment duration. We build a directed search model with symmetric i...

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Detalhes bibliográficos
Autores: Preugschat, Edgar|||0000-0003-0245-7023, Fernández-Blanco, Javier|||0000-0001-6788-5032
Formato: artículo
Fecha de publicación:2018
País:España
Recursos:Universitat Autònoma de Barcelona
Repositorio:Dipòsit Digital de Documents de la UAB
Idioma:inglés
OAI Identifier:oai:ddd.uab.cat:196487
Acesso em linha:https://ddd.uab.cat/record/196487
https://dx.doi.org/urn:doi:10.1016/j.euroecorev.2018.02.003
Access Level:acceso abierto
Palavra-chave:Ranking
Sorting
Directed search
Exit rates
Wages
Unemployment duration
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spelling On the effects of ranking by unemployment durationPreugschat, Edgar|||0000-0003-0245-7023Fernández-Blanco, Javier|||0000-0001-6788-5032RankingSortingDirected searchExit ratesWagesUnemployment durationWe propose a theory based on the firm's hiring behavior that rationalizes the observed significant decline of callback rates for an interview and exit rates from unemployment and the mild decline of reemployment wages over unemployment duration. We build a directed search model with symmetric incomplete information on worker types and non-sequential search by firms. Sorting due to firms' testing of applicants in the past makes expected productivity fall with duration, which induces firms to rank applicants by duration. In equilibrium callback and exit rates both fall with unemployment duration. In our numerical exercise using U.S. data we show that our model can replicate quite well the observed falling patterns, with the firm's ranking decision accounting for a sizable part. 22018-01-0120182018-01-01Articlehttp://purl.org/coar/resource_type/c_6501AMhttp://purl.org/coar/version/c_ab4af688f83e57aainfo:eu-repo/semantics/articleapplication/pdfhttps://ddd.uab.cat/record/196487https://dx.doi.org/urn:doi:10.1016/j.euroecorev.2018.02.003reponame:Dipòsit Digital de Documents de la UABinstname:Universitat Autònoma de BarcelonaInglésengMinisterio de Ciencia e Innovación https://doi.org/10.13039/501100004837 ECO2010-19357Ministerio de Ciencia y Tecnología https://doi.org/10.13039/501100006280 ECO2013-46395Ministerio de Economía y Competitividad https://doi.org/10.13039/501100003329 SEV-2015-0563open accesshttp://purl.org/coar/access_right/c_abf2Aquest material està protegit per drets d'autor i/o drets afins. Podeu utilitzar aquest material en funció del que permet la legislació de drets d'autor i drets afins d'aplicació al vostre cas. Per a d'altres usos heu d'obtenir permís del(s) titular(s) de drets.https://rightsstatements.org/vocab/InC/1.0/info:eu-repo/semantics/openAccessoai:ddd.uab.cat:1964872026-06-06T12:50:31Z
dc.title.none.fl_str_mv On the effects of ranking by unemployment duration
title On the effects of ranking by unemployment duration
spellingShingle On the effects of ranking by unemployment duration
Preugschat, Edgar|||0000-0003-0245-7023
Ranking
Sorting
Directed search
Exit rates
Wages
Unemployment duration
title_short On the effects of ranking by unemployment duration
title_full On the effects of ranking by unemployment duration
title_fullStr On the effects of ranking by unemployment duration
title_full_unstemmed On the effects of ranking by unemployment duration
title_sort On the effects of ranking by unemployment duration
dc.creator.none.fl_str_mv Preugschat, Edgar|||0000-0003-0245-7023
Fernández-Blanco, Javier|||0000-0001-6788-5032
author Preugschat, Edgar|||0000-0003-0245-7023
author_facet Preugschat, Edgar|||0000-0003-0245-7023
Fernández-Blanco, Javier|||0000-0001-6788-5032
author_role author
author2 Fernández-Blanco, Javier|||0000-0001-6788-5032
author2_role author
dc.subject.none.fl_str_mv Ranking
Sorting
Directed search
Exit rates
Wages
Unemployment duration
topic Ranking
Sorting
Directed search
Exit rates
Wages
Unemployment duration
description We propose a theory based on the firm's hiring behavior that rationalizes the observed significant decline of callback rates for an interview and exit rates from unemployment and the mild decline of reemployment wages over unemployment duration. We build a directed search model with symmetric incomplete information on worker types and non-sequential search by firms. Sorting due to firms' testing of applicants in the past makes expected productivity fall with duration, which induces firms to rank applicants by duration. In equilibrium callback and exit rates both fall with unemployment duration. In our numerical exercise using U.S. data we show that our model can replicate quite well the observed falling patterns, with the firm's ranking decision accounting for a sizable part.
publishDate 2018
dc.date.none.fl_str_mv 2
2018-01-01
2018
2018-01-01
dc.type.none.fl_str_mv Article
http://purl.org/coar/resource_type/c_6501
AM
http://purl.org/coar/version/c_ab4af688f83e57aa
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://ddd.uab.cat/record/196487
https://dx.doi.org/urn:doi:10.1016/j.euroecorev.2018.02.003
url https://ddd.uab.cat/record/196487
https://dx.doi.org/urn:doi:10.1016/j.euroecorev.2018.02.003
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.relation.none.fl_str_mv Ministerio de Ciencia e Innovación https://doi.org/10.13039/501100004837 ECO2010-19357
Ministerio de Ciencia y Tecnología https://doi.org/10.13039/501100006280 ECO2013-46395
Ministerio de Economía y Competitividad https://doi.org/10.13039/501100003329 SEV-2015-0563
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
https://rightsstatements.org/vocab/InC/1.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
https://rightsstatements.org/vocab/InC/1.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Dipòsit Digital de Documents de la UAB
instname:Universitat Autònoma de Barcelona
instname_str Universitat Autònoma de Barcelona
reponame_str Dipòsit Digital de Documents de la UAB
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