This study examines the extent to which the transition from university education to work is characterized by persistent hiring flows between university faculties and firms, rather than being characterized by an open market process. Using a specially devised metric, I find that more than one-half of all hires may be attributed to persistence in hiring by firms from specific faculties with the remainder due to random hiring. There does not seem to be a major difference in the importance of screening between science and engineering and non-science faculties. In general, the importance of persistence increases as the difference in the quality of the faculty from which existing personnel in firms graduated, and the standard of faculties from which firms are hiring increases. This suggests that persistence exists to aid firms in screening students when they come from relatively low-standard faculties.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
1816.
Find related papers by JEL classification: J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
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