Arbeitspapier

Ranking of job applicants, on-the-job search, and persistent unemployment

We formulate an efficiency wage model with on-the-job search where wages depend on turnover and employers may use information on whether the searching worker is employed or unemployed as a hiring criterion. We show theoretically that ranking of job applicants by employment status affects both the level and the persistence of unemployment and numerically that these effects may be substantial. More prevalent ranking in Europe compared to the US (because of more rigid wage structures etc.) could potentially help to explain the high and persistent unemployment in Europe.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2000:8

Classification
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Unemployment: Models, Duration, Incidence, and Job Search
Subject
Efficiency wage
Turnover
On-the-job search
Labor mobility
Persistence
Ranking
Unemployment

Event
Geistige Schöpfung
(who)
Eriksson, Stefan
Gottfries, Nils
Event
Veröffentlichung
(who)
Institute for Labour Market Policy Evaluation (IFAU)
(where)
Uppsala
(when)
2000

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Eriksson, Stefan
  • Gottfries, Nils
  • Institute for Labour Market Policy Evaluation (IFAU)

Time of origin

  • 2000

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