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Assessing the effectiveness of workers' selection exams: the case of Banca d'Italia

Author

Listed:
  • Santiago Pereda-Fernandez

    (Universidad de Cantabria)

Abstract

High-stakes exams can be used to rank and select candidates for job openings, and the ability of successful candidates hinges on the design of the exam. I propose a method for modelling candidates' performance in order to assess how effective the exam is at selecting high-ability candidates - defined as those more likely to provide correct answers after considering the observable characteristics of the candidates, their propensity to answer and the difficulty of the questions asked. I apply this method to the competitive exam used by the Bank of Italy in its hiring practices. This also offers an interesting case study on discrimination in hiring, as the selection rate for women is lower than that for men. The results suggest that the exam tends to select those candidates possessing a higher level of ability. Finally, some simulations show how certain modifications to the exam structure could potentially increase the average ability of the selected candidates.

Suggested Citation

  • Santiago Pereda-Fernandez, 2026. "Assessing the effectiveness of workers' selection exams: the case of Banca d'Italia," Temi di discussione (Economic working papers) 1515, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_1515_26
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    File URL: https://www.bancaditalia.it/pubblicazioni/temi-discussione/2026/2026-1515/en_tema_1515.pdf
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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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