Abstract

http://ssrn.com/abstract=1143316
 
 

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Costly Interviews


Jens Josephson


Stockholm University

Joel D. Shapiro


University of Oxford - Said Business School

October 10, 2013


Abstract:     
Interviewing in professional labor markets is a costly process for firms. Moreover, poor screening can have a persistent negative impact on firms' bottom lines and candidates' careers. In a simple dynamic model where firms can pay a cost to interview applicants who have private information about their own ability, potentially large inefficiencies arise from information-based unemployment, where able workers are rejected by firms because of their lack of offers in previous interviews. This effect may make the market less efficient than random matching.

Number of Pages in PDF File: 24

Keywords: Decentralized Labor Markets, Professional Labor Markets, Asymmetric Information, Interview costs, Matching

JEL Classification: D82, J21, J44

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Date posted: June 11, 2008 ; Last revised: October 10, 2013

Suggested Citation

Josephson, Jens and Shapiro, Joel D., Costly Interviews (October 10, 2013). Available at SSRN: http://ssrn.com/abstract=1143316 or http://dx.doi.org/10.2139/ssrn.1143316

Contact Information

Jens Josephson
Stockholm University ( email )
S-10691 Stockholm
Sweden
Joel D. Shapiro (Contact Author)
University of Oxford - Said Business School ( email )
Park End Street
Oxford, OX1 1HP
Great Britain
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References:  23
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