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• W2010777522 abstract "A matching model is analysed in which firms imperfectly test workers prior to hiring them. If (some) firms hire only workers who pass the test, there is an informational externality; unemployment duration is a signal of productivity. In equilibrium, if it is profitable for a firm to test, it is also profitable for it to condition its hiring decision on duration, hiring those whose duration is less than a critical value. This testing equilibrium is inefficient, with too much testing and too low a critical duration value. Sensitivity analysis of the latter suggests explanations for the dependence of re-employment probabilities on duration and the instability of the U-V curve." @default.
• W2010777522 created "2016-06-24" @default.
• W2010777522 creator A5005990047 @default.
• W2010777522 date "1991-06-01" @default.
• W2010777522 modified "2023-10-02" @default.
• W2010777522 title "Information Externalities in the Labour Market and the Duration of Unemployment" @default.
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• W2010777522 doi "https://doi.org/10.2307/2297830" @default.
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