Truth or Macroeconomic Consequences: The Demise of References in the United States
AbstractSince the early 1970s, there has been a dramatic change in the way firms handle reference requests. Before 1970, firms would willingly provide detailed information about a former employee's job performance. More recently , firms have become reluctant to provide information due to a perceived increase in either the frequency of employee defamation suits or the magnitude of the settlements. This paper develops a model in which firms willingly provide references when associated costs are low, but cease providing references when costs rise dramatically. This model predicts several consequences of such a decline in the use of references; a key prediction is an increase in the natural rate of unemployment.
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Bibliographic InfoPaper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 9604.
Date of creation: Jan 1997
Date of revision:
Publication status: Published in Journal of Post Keynesian Economics, Spring 2000, Vol. 22:3, pp. 461-487.
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Web page: http://www.holycross.edu/departments/economics/website/
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