This article provides evidence that involuntary unemployment, and the segmentation of labour markets into firms offering "good" and "bad" jobs, may both arise as a consequence of contractual incompleteness. We provide a simple model that illustrates how unemployment and market segmentation may...

Interviewing is a decisive stage of most processes that match candidates to firms and organizations. This paper studies how and why a candidate's interview outcome depends on the other candidates interviewed by the same evaluator. We use large-scale data from high-stakes admission and hiring...