IDEAS home Printed from https://ideas.repec.org/a/spr/jlabrs/v52y2018i1d10.1186_s12651-018-0239-7.html
   My bibliography  Save this article

How unemployment scarring affects skilled young workers: evidence from a factorial survey of Swiss recruiters

Author

Listed:
  • Lulu P. Shi

    (University of Basel)

  • Christian Imdorf

    (Norwegian University of Science and Technology)

  • Robin Samuel

    (Université du Luxembourg, Maison des Sciences Humaines)

  • Stefan Sacchi

    (University of Bern)

Abstract

We ask how employers contribute to unemployment scarring in the recruitment process in the German-speaking part of Switzerland. By drawing on recruitment theories, we aim to better understand how recruiters assess different patterns of unemployment in a job candidate’s CV and how this affects the chances of young applicants being considered for a vacancy. We argue that in contexts with tight school-work linkage and highly standardised Vocational Education and Training systems, the detrimental effect of early unemployment depends on how well the applicant’s profile matches the requirements of the advertised position. To test this assumption, we surveyed Swiss recruiters who were seeking to fill positions during the time of data collection. We employed a factorial survey experiment that tested how the (un)employment trajectories in hypothetical young job applicants’ CV affected their chances of being considered for a real vacancy. Our results show that unemployment decreases the perceived suitability of an applicant for a specific job, which implies there is a scarring effect of unemployment that increases with the duration of being unemployed. But we also found that these effects are moderated by how well the applicant’s profile matches the job’s requirements. Overall, the worse the match between applicant’s profile and the job profile, the smaller are the scarring effects of unemployment. In sum, our findings contribute to the literature by revealing considerable heterogeneity in the scarring effects of unemployment. Our findings further suggest that the scarring effects of unemployment need to be studied with regard to country-specific institutional settings, the applicants’ previous education and employment experiences, and the job characteristics.

Suggested Citation

  • Lulu P. Shi & Christian Imdorf & Robin Samuel & Stefan Sacchi, 2018. "How unemployment scarring affects skilled young workers: evidence from a factorial survey of Swiss recruiters," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 52(1), pages 1-15, December.
  • Handle: RePEc:spr:jlabrs:v:52:y:2018:i:1:d:10.1186_s12651-018-0239-7
    DOI: 10.1186/s12651-018-0239-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s12651-018-0239-7
    File Function: Abstract
    Download Restriction: no

    File URL: https://libkey.io/10.1186/s12651-018-0239-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kory Kroft & Fabian Lange & Matthew J. Notowidigdo, 2013. "Duration Dependence and Labor Market Conditions: Evidence from a Field Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 128(3), pages 1123-1167.
    2. Barry McCormick, 1990. "A Theory of Signalling During Job Search, Employment Efficiency, and "Stigmatised" Jobs," Review of Economic Studies, Oxford University Press, vol. 57(2), pages 299-313.
    3. Guillermina Jasso, 2006. "Factorial Survey Methods for Studying Beliefs and Judgments," Sociological Methods & Research, , vol. 34(3), pages 334-423, February.
    4. 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.
    5. Gerard J. van den Berg & Jan C. van Ours, 1999. "Duration dependence and heterogeneity in French youth unemployment durations," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(2), pages 273-285.
    6. Humburg, Martin & van der Velden, Rolf, 2015. "Skills and the graduate recruitment process: Evidence from two discrete choice experiments," Economics of Education Review, Elsevier, vol. 49(C), pages 24-41.
    7. 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.
    8. Abbring, Jaap H & van den Berg, Gerard J & van Ours, Jan C, 2001. "Business Cycles and Compositional Variation in U.S. Unemployment," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 436-448, October.
    9. John M. Nunley & Adam Pugh & Nicholas Romero & Richard Alan Seals, Jr., 2014. "Unemployment, Underemployment, and Employment Opportunities: Results from a Correspondence Audit of the Labor Market for College Graduates," Auburn Economics Working Paper Series auwp2014-04, Department of Economics, Auburn University.
    10. John M. Nunley & Adam Pugh & Nicholas Romero & R. Alan Seals, 2017. "The Effects of Unemployment and Underemployment on Employment Opportunities," ILR Review, Cornell University, ILR School, vol. 70(3), pages 642-669, May.
    11. Johannes F. Schmieder & Till von Wachter & Stefan Bender, 2016. "The Effect of Unemployment Benefits and Nonemployment Durations on Wages," American Economic Review, American Economic Association, vol. 106(3), pages 739-777, March.
    12. Omori, Yoshiaki, 1997. "Stigma Effects of Nonemployment," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 394-416, April.
    13. Stijn Baert & Dieter Verhaest, 2019. "Unemployment or Overeducation: Which is a Worse Signal to Employers?," De Economist, Springer, vol. 167(1), pages 1-21, March.
    14. van den Berg, Gerard J & van Ours, Jan C, 1996. "Unemployment Dynamics and Duration Dependence," Journal of Labor Economics, University of Chicago Press, vol. 14(1), pages 100-125, January.
    15. Biewen, Martin & Steffes, Susanne, 2010. "Unemployment persistence: Is there evidence for stigma effects?," Economics Letters, Elsevier, vol. 106(3), pages 188-190, March.
    16. Marcello Pagnini & Paola Rossi & Valerio Vacca, 2017. "Introduction," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 46(3), pages 409-410, November.
    17. Markus Gangl, 2002. "Changing Labour Markets and Early Career Outcomes: Labour Market Entry in Europe Over the Past Decade," Work, Employment & Society, British Sociological Association, vol. 16(1), pages 67-90, March.
    18. David Devins & Terence Hogarth, 2005. "Employing the Unemployed: Some Case Study Evidence on the Role and Practice of Employers," Urban Studies, Urban Studies Journal Limited, vol. 42(2), pages 245-256, February.
    19. Humburg, M. & van der Velden, R.K.W., 2014. "Skills and the graduate recruitment process: Evidence from two discrete choice experiments," ROA Research Memorandum 002, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    20. Ben Lockwood, 1991. "Information Externalities in the Labour Market and the Duration of Unemployment," Review of Economic Studies, Oxford University Press, vol. 58(4), pages 733-753.
    21. Christopher A. Pissarides, 1992. "Loss of Skill During Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 107(4), pages 1371-1391.
    22. Oberholzer-Gee, Felix, 2008. "Nonemployment stigma as rational herding: A field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 65(1), pages 30-40, January.
    23. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miroslav Štefánik & Katarína Karasová & Ivana Studená, 2020. "Can supporting workplace insertions of unemployed recent graduates improve their long-term employability?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(2), pages 245-265, May.
    2. Tamara Gutfleisch & Robin Samuel & Stefan Sacchi, 2021. "The application of factorial surveys to study recruiters’ hiring intentions: comparing designs based on hypothetical and real vacancies," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(3), pages 775-804, June.
    3. Jacobus Johannes de Jongh, 2019. "Understanding the Drivers of Long-Term Youth Unemployment: Micro-Level Evidence from South Africa," Proceedings of International Academic Conferences 9912297, International Institute of Social and Economic Sciences.
    4. Christian Imdorf & Matthias Pohlig, 2021. "La sélection sur le marché du travail selon les ruptures dans le parcours antérieur comparaison Suisse et Bulgarie," Post-Print halshs-03364147, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mattia Filomena, 2021. "Unemployment Scarring Effects: A Symposium On Empirical Literature," Working Papers 453, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. Van Belle, Eva & Caers, Ralf & De Couck, Marijke & Di Stasio, Valentina & Baert, Stijn, 2017. "Why Is Unemployment Duration a Sorting Criterion in Hiring?," IZA Discussion Papers 10876, Institute of Labor Economics (IZA).
    3. Alexander Plum, 2018. "Stochastic Expected Utility for Binary Choice: New Representations," Working Papers 2018-08, Auckland University of Technology, Department of Economics.
    4. Nüß, Patrick, 2017. "Duration Dependence as an Unemployment Stigma: Evidence from a Field Experiment in Germany," GLO Discussion Paper Series 88, Global Labor Organization (GLO).
    5. Verhaest, Dieter & Bogaert, Elene & Dereymaeker, Jeroen & Mestdagh, Laura & Baert, Stijn, 2016. "Crowding Out in the Labour Market: Do Employers Lend a Hand?," IZA Discussion Papers 9654, Institute of Labor Economics (IZA).
    6. Piopiunik, Marc & Schwerdt, Guido & Simon, Lisa & Woessmann, Ludger, 2020. "Skills, signals, and employability: An experimental investigation," European Economic Review, Elsevier, vol. 123(C).
    7. Anna Manzoni & Irma Mooi-Reci, 2020. "The cumulative disadvantage of unemployment: Longitudinal evidence across gender and age at first unemployment in Germany," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-20, June.
    8. Gabriel P. Mathy, 2018. "Hysteresis and persistent long-term unemployment: the American Beveridge Curve of the Great Depression and World War II," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(1), pages 127-152, January.
    9. Namingit, Sheryll & Blankenau, William & Schwab, Benjamin, 2021. "Sick and tell: A field experiment analyzing the effects of an illness-related employment gap on the callback rate," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 865-882.
    10. Gerhard Krug & Katrin Drasch & Monika Jungbauer-Gans, 2019. "The social stigma of unemployment: consequences of stigma consciousness on job search attitudes, behaviour and success," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-27, December.
    11. Stijn Baert & Dieter Verhaest, 2019. "Unemployment or Overeducation: Which is a Worse Signal to Employers?," De Economist, Springer, vol. 167(1), pages 1-21, March.
    12. John M. Nunley & Adam Pugh & Nicholas Romero & Richard Alan Seals, Jr., 2015. "Unemployment, Underemployment, and Employment Opportunities: Results from a Correspondence Audit," Auburn Economics Working Paper Series auwp2015-13, Department of Economics, Auburn University.
    13. John M. Nunley & Adam Pugh & Nicholas Romero & Richard Alan Seals, Jr., 2014. "Unemployment, Underemployment, and Employment Opportunities: Results from a Correspondence Audit of the Labor Market for College Graduates," Auburn Economics Working Paper Series auwp2014-04, Department of Economics, Auburn University.
    14. Emmanuel Duguet & Yannick l'Horty & Rémi Le Gall & Pascale Petit, 2018. "How does labour market history influence the access to hiring interviews?," Post-Print hal-01827450, HAL.
    15. Tamara Gutfleisch & Robin Samuel & Stefan Sacchi, 2021. "The application of factorial surveys to study recruiters’ hiring intentions: comparing designs based on hypothetical and real vacancies," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(3), pages 775-804, June.
    16. Ioannis Kospentaris, 2021. "Unobserved Heterogeneity and Skill Loss in a Structural Model of Duration Dependence," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 39, pages 280-303, January.
    17. Fernández-Blanco, Javier & Preugschat, Edgar, 2018. "On the effects of ranking by unemployment duration," European Economic Review, Elsevier, vol. 104(C), pages 92-110.
    18. Biewen, Martin & Steffes, Susanne, 2010. "Unemployment persistence: Is there evidence for stigma effects?," Economics Letters, Elsevier, vol. 106(3), pages 188-190, March.
    19. Michael W. L. Elsby & Ryan Michaels & David Ratner, 2015. "The Beveridge Curve: A Survey," Journal of Economic Literature, American Economic Association, vol. 53(3), pages 571-630, September.
    20. Pasquini, Alessandra & Centra, Marco & Pellegrini, Guido, 2019. "Fighting long-term unemployment: Do we have the whole picture?," Labour Economics, Elsevier, vol. 61(C).

    More about this item

    Keywords

    Recruitment; Youth unemployment; Scarring; Hiring; Factorial survey; Switzerland;
    All these keywords.

    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jlabrs:v:52:y:2018:i:1:d:10.1186_s12651-018-0239-7. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.