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Selecting Applicants

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  • Alex Frankel

Abstract

A firm selects applicants to hire based on hard information, such as a test result, and soft information, such as a manager's evaluation of an interview. The contract that the firm offers to the manager can be thought of as a restriction on acceptance rates as a function of test results. I characterize optimal acceptance rate functions both when the firm knows the manager's mix of information and biases and when the firm is uncertain. These contracts may admit a simple implementation in which the manager can accept any set of applicants with a sufficiently high average test score.

Suggested Citation

  • Alex Frankel, 2021. "Selecting Applicants," Econometrica, Econometric Society, vol. 89(2), pages 615-645, March.
    • Handle: RePEc:wly:emetrp:v:89:y:2021:i:2:p:615-645
    DOI: 10.3982/ECTA15510
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    References listed on IDEAS

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    Cited by:

    1. Cai, Guowei & Deng, Weiguang & Li, Xue, 2023. "Student leadership experience and job accessibility: An experiment from China," China Economic Review, Elsevier, vol. 78(C).

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