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Hiring from a pool of workers

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  • Abizada, Azar
  • Bó, Inácio Guerberoff Lanari

Abstract

We consider the hiring of public sector workers through legislated rules and exam-based rankings, as is done in many countries and institutions around the world. In them, workers take tests and are ranked based on scores in exams and other pre-determined criteria, and those who satisfy some eligibility criteria are made available for hiring in 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. We show that when the scores are the only criterion for selection, the procedure satisfies desired fairness and independence properties. We show, with the aid of details of procedures used in Brazil, France and Australia, that when compositional objectives are introduced, such as affirmative action policies, both the procedures used in the field and in the literature fail to satisfy those properties. We then present a new rule, which we show to be the unique rule that satisfies those properties. Finally, we show that if multiple institutions hire workers from a single pool, even minor consistency requirements are incompatible with compositional objectives.

Suggested Citation

  • Abizada, Azar & Bó, Inácio Guerberoff Lanari, 2019. "Hiring from a pool of workers," Discussion Papers, Research Unit: Market Behavior SP II 2019-201, WZB Berlin Social Science Center.
  • Handle: RePEc:zbw:wzbmbh:spii2019201
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    References listed on IDEAS

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    1. Thomson William, 1994. "Consistent Solutions to the Problem of Fair Division When Preferences Are Single-Peaked," Journal of Economic Theory, Elsevier, vol. 63(2), pages 219-245, August.
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    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.
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    Cited by:

    1. Ting Zhang & Dan Gerlowski & Zoltan Acs, 2022. "Working from home: small business performance and the COVID-19 pandemic," Small Business Economics, Springer, vol. 58(2), pages 611-636, February.

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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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