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Estimating the Determinants of Employee Performance

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  • Charles Brown

Abstract

Employers often wish to know whether the factors used in selecting employees do in fact allow them to choose the most qualified applicants. Because the performance of those not chosen is not observed, sample-selection bias is a likely problem in any attempt to "validate" employee-selection criteria. With minor modifications, the recently developed techniques for dealing with sample-selection problems can be used. Using data on applicants for first-line supervisory positions and ratings of on-the-job performance of those hired, ordinary least squares estimates of the determinants of performance are compared with maximum-likelihood estimates which correct for selection bias. The correction for selection bias produces changes in the expected direction in some variables' coefficients, though the corrected estimates remain insignificant at conventional levels.

Suggested Citation

  • Charles Brown, 1982. "Estimating the Determinants of Employee Performance," Journal of Human Resources, University of Wisconsin Press, vol. 17(2), pages 178-194.
    • Handle: RePEc:uwp:jhriss:v:17:y:1982:i:2:p:178-194
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    References listed on IDEAS

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    1. Finis Welch, 1977. "What Have We Learned from Empirical Studies of Unemployment Insurance?," ILR Review, Cornell University, ILR School, vol. 30(4), pages 451-461, July.
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    Cited by:

    1. Katharine G. Abraham & James L. Medoff, 1983. "Length of Service and the Operation of Internal Labor Markets," NBER Working Papers 1085, National Bureau of Economic Research, Inc.
    2. Bao Ngoc, Nguyen Le & Kesavayuth, Dusanee & Rangkakulnuwat, Poomthan, 2022. "Effect of Locus of Control on Job Performance:Evidence from Australian Panel Data," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 29(1), pages 1-25, June.
    3. John Bishop, 1994. "The Impact of Previous Training on Productivity and Wages," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 161-200, National Bureau of Economic Research, Inc.
    4. John Bishop, 1993. "Improving Job Matches in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1 Microec), pages 335-400.
    5. James L. Medoff & Katharine G. Abraham, 1981. "Involuntary Terminations under Explicit and Implicit Employment Contracts," NBER Working Papers 0634, National Bureau of Economic Research, Inc.

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