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Competition between employed and unemployed job applicants: Swedish evidence

Author

Listed:
  • Eriksson, Stefan

    () (Uppsala University, Department of Economics)

  • Lagerström, Jonas

    () (Uppsala University, Department of Economics)

Abstract

We use the Swedish Job Applicant Database to empirically investigate whether being unemployed per se reduces the probability to get contacted by a firm. This database contains personal characteristics and preferences over the type of job the applicant wants to find. The data is submitted both by employed and unemployed workers over the Internet by the applicants themselves. This means that we have access to exactly the same information as firms have when they choose whom to contact. Our results show that an unemployed applicant faces a lower probability to get contacted by a firm than an otherwise identical employed applicant, thus supporting the claim that firms view employment status as an important signal for productivity.

Suggested Citation

  • Eriksson, Stefan & Lagerström, Jonas, 2004. "Competition between employed and unemployed job applicants: Swedish evidence," Working Paper Series 2004:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2004_002
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Stefan Eriksson & Jonas Lagerström, 2012. "The Labor Market Consequences of Gender Differences in Job Search," Journal of Labor Research, Springer, vol. 33(3), pages 303-327, September.
    2. Bart Cockx & Muriel Dejemeppe & Andrey Launov & Bruno Van der Linden, 2018. "Imperfect Monitoring of Job Search: Structural Estimation and Policy Design," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 75-120.
    3. 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.
    4. Ronald Bachmann & Peggy David, 2009. "The Importance of Two-Sided Heterogeneity for the Cyclicality of Labour Market Dynamics," Ruhr Economic Papers 0124, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Francesco Pastore, 2012. "Primum vivere . . . industrial change, job destruction and the geographical distribution of unemployment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-15, December.
    6. Bachmann, Ronald & David, Peggy, 2009. "The importance of two-sided heterogeneity for the cyclicality of labour market dynamics," Technical Reports 2009,05, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
    7. Blasco, Sylvie & Pertold-Gebicka, Barbara, 2013. "Employment policies, hiring practices and firm performance," Labour Economics, Elsevier, vol. 25(C), pages 12-24.
    8. Forslund, Anders & Johansson, Per & Lindqvist, Linus, 2004. "Employment subsidies - A fast lane from unemployment to work?," Working Paper Series 2004:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    9. Francesco Pastore & Joanna Tyrowicz, 2013. "Polish high unemployment and spatial labor turnover. Insights from panel data analysis using unemployment registry data," Working Papers 2013-18, Faculty of Economic Sciences, University of Warsaw.
    10. Stefan Eriksson & Jonas Lagerström, 2012. "Detecting discrimination in the hiring process: evidence from an Internet-based search channel," Empirical Economics, Springer, vol. 43(2), pages 537-563, October.
    11. Akiomi Kitagawa, 2013. "Long-run Consequences of Ranking Job Applicants by Unemployment Duration: Theoretical and Numerical Analyses," DSSR Discussion Papers 13, Graduate School of Economics and Management, Tohoku University.
    12. Pastore, Francesco & Tyrowicz, Joanna, 2012. "Labour Turnover and the Spatial Distribution of Unemployment: A Panel Data Analysis Using Employment Registry Data," IZA Discussion Papers 7074, Institute for the Study of Labor (IZA).
    13. Maurer-Fazio, Margaret & Wang, Sili, 2018. "Does Marital Status Affect How Firms Interpret Job Applicants' Un/Employment Histories?," IZA Discussion Papers 11363, Institute for the Study of Labor (IZA).
    14. Nabanita Datta Gupta & Mona Larsen & Lars Thomsen, 2015. "Do wage subsidies for disabled workers reduce their non-employment? - evidence from the Danish Flexjob scheme," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-26, December.
    15. repec:zbw:rwirep:0124 is not listed on IDEAS
    16. repec:use:tkiwps:3535 is not listed on IDEAS
    17. Sanna-Mari Hynninen & Aki Kangasharju & Jaakko Pehkonen, 2009. "Matching Inefficiencies, Regional Disparities, and Unemployment," LABOUR, CEIS, vol. 23(3), pages 481-506, September.
    18. Simonetta Longhi, 2012. "Job Competition and the Wage Curve," Regional Studies, Taylor & Francis Journals, vol. 46(5), pages 611-620, August.
    19. Nordström Skans, Oskar, 2004. "Scarring effects of the first labour market experience: A sibling based analysis," Working Paper Series 2004:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    20. Edin, Per-Anders & Lagerström, Jonas, 2006. "Blind dates: quasi-experimental evidence on discrimination," Working Paper Series 2006:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    21. Longhi, Simonetta, 2007. "On-the-job search and job competition: relevance and wage impact in the UK," ISER Working Paper Series 2007-06, Institute for Social and Economic Research.
    22. Longhi, Simonetta, 2015. "Do the Unemployed Accept Jobs Too Quickly? A Comparison with Employed Job Seekers," IZA Discussion Papers 9112, Institute for the Study of Labor (IZA).
    23. Pastore, Francesco, 2013. "Primum vivere… Industrial Change, Job Destruction and the Geographical Distribution of Unemployment," IZA Discussion Papers 7126, Institute for the Study of Labor (IZA).
    24. Mussida, Chiara & Pastore, Francesco, 2012. "Is There a Southern-Sclerosis? Worker Reallocation and Regional Unemployment in Italy," IZA Discussion Papers 6954, Institute for the Study of Labor (IZA).
    25. repec:bla:intmig:v:51:y:2017:i:1:p:251-286 is not listed on IDEAS

    More about this item

    Keywords

    Employed and unemployed job seekers; discrimination;

    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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