Statistical Discrimination and Duration Dependence in the Job Finding Rate

• 成果类型: Article
• 署名作者: Jarosch, Gregor; Pilossoph, Laura
• 署名单位: Princeton University; National Bureau of Economic Research; Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdy055
• 发表日期: 2019
• 页码: 1631-1665
• 关键词: labor-market conditions; cyclical behavior; equilibrium unemployment; field; search; COSTS; VACANCIES; ranking; workers; stigma

摘要

This article models a frictional labour market where employers endogenously discriminate against the long-term unemployed. The estimated model replicates recent experimental evidence which documents that interview invitations for observationally equivalent workers fall sharply as unemployment duration progresses. We use the model to quantitatively assess the consequences of such employer behaviour for job finding rates and long-term unemployment and find only modest effects given the large decline in callbacks. Interviews lost to duration impact individual job finding rates solely if they would have led to jobs. We show that such instances are rare when firms discriminate in anticipation of an ultimately unsuccessful application. Discrimination in callbacks is thus largely a response to dynamic selection, with limited consequences for structural duration dependence and long-term unemployment.