Costly Interviews

24 Pages Posted: 11 Jun 2008 Last revised: 10 Oct 2013

Jens Josephson

Stockholm University

Joel D. Shapiro

University of Oxford - Said Business School

Multiple version iconThere are 2 versions of this paper

Date Written: 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.

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

JEL Classification: D82, J21, J44

Suggested Citation

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

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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