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Competition between Employed and Unemployed Job Applicants: Swedish Evidence

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  • 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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    1. Bean, Charles R, 1994. "European Unemployment: A Survey," Journal of Economic Literature, American Economic Association, pages 573-619.
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    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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