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Matching with interviews

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  • Masters, Adrian

Abstract

This paper explores how interviews affect the matching process when worker productivity is private information. Wages are determined by a single round of strategic bargaining after the worker is interviewed. The implications of this hiring process for the efficiency of matching and the incidence and severity of statistical discrimination are considered. The better are firms at identifying productive workers the worse the average quality of the unemployment pool so interviewing tends to slow down matching for every one. Multiple Pareto rankable equilibria are possible such that any social group in a "bad" equilibrium faces stricter hiring standards, longer spells of unemployment and lower welfare.

Suggested Citation

  • Masters, Adrian, 2009. "Matching with interviews," Journal of Economic Dynamics and Control, Elsevier, vol. 33(4), pages 938-954, April.
    • Handle: RePEc:eee:dyncon:v:33:y:2009:i:4:p:938-954
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    References listed on IDEAS

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    1. Masters, Adrian, 2014. "Statistical discrimination from composition effects in the market for low-skilled workers," Labour Economics, Elsevier, vol. 26(C), pages 72-80.
    2. Steinar Holden & Åsa Rosén, 2014. "Discrimination And Employment Protection," Journal of the European Economic Association, European Economic Association, vol. 12(6), pages 1676-1699, December.
    3. , C. & ,, 2013. "Adverse selection and unraveling in common-value labor markets," Theoretical Economics, Econometric Society, vol. 8(3), September.

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