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Hiring from a pool of workers

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  • Abizada, Azar
  • Bó, Inácio

Abstract

In many countries and institutions around the world, the hiring of workers is made through open competitions. In them, candidates take tests and are ranked based on scores in exams and other predetermined criteria. Those who satisfy some eligibility criteria are made available for hiring from a “pool of workers.” In each of an ex-ante unknown number of rounds, vacancies are announced, and workers are then hired from that pool. When the scores are the only criterion for selection, the procedure satisfies desired fairness and independence properties. We show that when affirmative action policies are introduced, the established methods of reserves and procedures used in Brazil, France, and Australia, fail to satisfy those properties. We then present a new rule, which we show to be the unique rule that extends static notions of fairness to problems with multiple rounds while satisfying aggregation independence, a consistency requirement. Finally, we show that if multiple institutions hire workers from a single pool, even minor consistency requirements are incompatible with variations in the institutions’ rules.

Suggested Citation

  • Abizada, Azar & Bó, Inácio, 2021. "Hiring from a pool of workers," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 576-591.
  • Handle: RePEc:eee:jeborg:v:186:y:2021:i:c:p:576-591
    DOI: 10.1016/j.jebo.2021.03.010
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    References listed on IDEAS

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    6. Orhan Aygün & Inácio Bó, 2021. "College Admission with Multidimensional Privileges: The Brazilian Affirmative Action Case," American Economic Journal: Microeconomics, American Economic Association, vol. 13(3), pages 1-28, August.
    7. Tadenuma, Koichi & Thomson, William, 1991. "No-Envy and Consistency in Economies with Indivisible Goods," Econometrica, Econometric Society, vol. 59(6), pages 1755-1767, November.
    8. Tayfun Sönmez & M. Bumin Yenmez, 2019. "Affirmative Action in India via Vertical and Horizontal Reservations," Boston College Working Papers in Economics 977, Boston College Department of Economics.
    9. Atila Abdulkadiroglu & Tayfun Sönmez, 2003. "School Choice: A Mechanism Design Approach," American Economic Review, American Economic Association, vol. 93(3), pages 729-747, June.
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    12. Dur, Umut & Pathak, Parag A. & Sönmez, Tayfun, 2020. "Explicit vs. statistical targeting in affirmative action: Theory and evidence from Chicago's exam schools," Journal of Economic Theory, Elsevier, vol. 187(C).
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    2. Patni, Sagar & Srinivasan, Sivaramakrishnan & Suarez, Juan, 2023. "The impact of COVID-19 on route-level changes in transit demand an analysis of five transit agencies in Florida, USA," Transportation Research Part A: Policy and Practice, Elsevier, vol. 167(C).

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    More about this item

    Keywords

    Public organizations; Hiring; Affirmative action;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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