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Who Gets Hired? The Importance of Finding an Open Slot

Author

Listed:
  • Edward P. Lazear
  • Kathryn L. Shaw
  • Christopher T. Stanton

Abstract

A model of hiring into posted job slots suggests hiring is based on comparative advantage: being hired depends not only on one’s own skill but also on the skills of other applicants. The model has numerous implications. First, bumping of applicants occurs when one job-seeker is slotted into a lower paying job by another applicant who is more skilled. Second, less able workers are more likely to be unemployed because they are bumped. Third, vacancies are higher for harder to fill skilled jobs. Fourth, some workers are over-qualified for their jobs whereas others are under-qualified. These implications are borne out using four different data sets.

Suggested Citation

  • Edward P. Lazear & Kathryn L. Shaw & Christopher T. Stanton, 2016. "Who Gets Hired? The Importance of Finding an Open Slot," NBER Working Papers 22202, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22202
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    References listed on IDEAS

    as
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    1. Who Gets Hired? The Importance of Finding an Open Slot
      by maximorossi in NEP-LTV blog on 2016-07-01 19:56:28

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    Cited by:

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    2. Alan Benson & Danielle Li & Kelly Shue, 2019. "Promotions and the Peter Principle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 2085-2134.
    3. Jaume, David, 2021. "The labor market effects of an educational expansion," Journal of Development Economics, Elsevier, vol. 149(C).

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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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