Statistical Discrimination and Duration Dependence in the Job Finding Rate
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Georg Jarosch [1] ; Laura Pilossoph [2]
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[1] Princeton University
Princeton University
Estados Unidos
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[2] Federal Reserve Bank of New York
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- Localización: Review of economic studies, ISSN 0034-6527, Vol. 86, Nº 4, 2019, págs. 1631-1665
- Idioma: inglés
- Texto completo no disponible (Saber más ...)
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Resumen
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.
