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Competition between Employed and Unemployed Job Applicants: Swedish Evidence

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Listed:
  • Stefan Eriksson
  • Jonas Lagerström

Abstract

We use the Swedish Applicant Database to investigate empirically whether being unemployed "per se" reduces the probability of getting contacted by a firm. All searchers looking for a new job are invited to submit their personal details to this database over the internet. Since we have access to "exactly" the same information as the firms, we can minimize the problems associated with unobserved heterogeneity. Our results show that an unemployed applicant faces a lower contact probability than an otherwise identical employed applicant, thus supporting the notion that firms view employment status as a signal of productivity. Copyright The editors of the "Scandinavian Journal of Economics" 2006 .

Suggested Citation

  • Stefan Eriksson & Jonas Lagerström, 2006. "Competition between Employed and Unemployed Job Applicants: Swedish Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(3), pages 373-396, October.
  • Handle: RePEc:bla:scandj:v:108:y:2006:i:3:p:373-396
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mussida, Chiara & Pastore, Francesco, 2012. "Is There a Southern-Sclerosis? Worker Reallocation and Regional Unemployment in Italy," IZA Discussion Papers 6954, Institute for the Study of Labor (IZA).
    2. Stefan Eriksson & Jonas Lagerström, 2012. "The Labor Market Consequences of Gender Differences in Job Search," Journal of Labor Research, Springer, vol. 33(3), pages 303-327, September.
    3. Bachmann, Ronald & David, Peggy, 2009. "The importance of two-sided heterogeneity for the cyclicality of labour market dynamics," Technical Reports 2009,05, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
    4. Blasco, Sylvie & Pertold-Gebicka, Barbara, 2013. "Employment policies, hiring practices and firm performance," Labour Economics, Elsevier, vol. 25(C), pages 12-24.
    5. Bart Cockx & Muriel Dejemeppe & Andrey Launov & Bruno Van der Linden, 2018. "Imperfect Monitoring of Job Search: Structural Estimation and Policy Design," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 75-120.
    6. Forslund, Anders & Johansson, Per & Lindqvist, Linus, 2004. "Employment subsidies - A fast lane from unemployment to work?," Working Paper Series 2004:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Stefan Eriksson & Jonas Lagerström, 2012. "Detecting discrimination in the hiring process: evidence from an Internet-based search channel," Empirical Economics, Springer, vol. 43(2), pages 537-563, October.
    8. Pastore, Francesco, 2013. "Primum vivere… Industrial Change, Job Destruction and the Geographical Distribution of Unemployment," IZA Discussion Papers 7126, Institute for the Study of Labor (IZA).
    9. Stefan Eriksson & Dan-Olof Rooth, 2014. "Do Employers Use Unemployment as a Sorting Criterion When Hiring? Evidence from a Field Experiment," American Economic Review, American Economic Association, vol. 104(3), pages 1014-1039, March.
    10. repec:zbw:rwirep:0124 is not listed on IDEAS
    11. Pastore, Francesco & Tyrowicz, Joanna, 2012. "Labour Turnover and the Spatial Distribution of Unemployment: A Panel Data Analysis Using Employment Registry Data," IZA Discussion Papers 7074, Institute for the Study of Labor (IZA).
    12. repec:use:tkiwps:3535 is not listed on IDEAS
    13. Sanna-Mari Hynninen & Aki Kangasharju & Jaakko Pehkonen, 2009. "Matching Inefficiencies, Regional Disparities, and Unemployment," LABOUR, CEIS, vol. 23(3), pages 481-506, September.
    14. Simonetta Longhi, 2012. "Job Competition and the Wage Curve," Regional Studies, Taylor & Francis Journals, vol. 46(5), pages 611-620, August.
    15. Ronald Bachmann & Peggy David, 2009. "The Importance of Two-Sided Heterogeneity for the Cyclicality of Labour Market Dynamics," Ruhr Economic Papers 0124, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    16. repec:bla:intmig:v:51:y:2017:i:1:p:251-286 is not listed on IDEAS
    17. Nordström Skans, Oskar, 2004. "Scarring effects of the first labour market experience: A sibling based analysis," Working Paper Series 2004:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    18. Francesco Pastore, 2012. "Primum vivere . . . industrial change, job destruction and the geographical distribution of unemployment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-15, December.
    19. Francesco Pastore & Joanna Tyrowicz, 2013. "Polish high unemployment and spatial labor turnover. Insights from panel data analysis using unemployment registry data," Working Papers 2013-18, Faculty of Economic Sciences, University of Warsaw.
    20. Nabanita Datta Gupta & Mona Larsen & Lars Thomsen, 2015. "Do wage subsidies for disabled workers reduce their non-employment? - evidence from the Danish Flexjob scheme," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-26, December.
    21. Akiomi Kitagawa, 2013. "Long-run Consequences of Ranking Job Applicants by Unemployment Duration: Theoretical and Numerical Analyses," DSSR Discussion Papers 13, Graduate School of Economics and Management, Tohoku University.
    22. Edin, Per-Anders & Lagerström, Jonas, 2006. "Blind dates: quasi-experimental evidence on discrimination," Working Paper Series 2006:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    23. Maurer-Fazio, Margaret & Wang, Sili, 2018. "Does Marital Status Affect How Firms Interpret Job Applicants' Un/Employment Histories?," IZA Discussion Papers 11363, Institute for the Study of Labor (IZA).
    24. Longhi, Simonetta, 2007. "On-the-job search and job competition: relevance and wage impact in the UK," ISER Working Paper Series 2007-06, Institute for Social and Economic Research.
    25. Longhi, Simonetta, 2015. "Do the Unemployed Accept Jobs Too Quickly? A Comparison with Employed Job Seekers," IZA Discussion Papers 9112, Institute for the Study of Labor (IZA).

    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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