Firms select not only how many, but also which workers to hire. Yet, in standard searchmodels of the labor market, all workers have the same probability of being hired. We arguethat selective hiring crucially affects welfare analysis. Our model is isomorphic to a searchmodel under random hiring...

We evaluate a randomized experiment of a statistical support system developed to assistcaseworkers in Swiss employment offices in choosing appropriate active labour marketprogrammes for their unemployed clients. This statistical support system predicted the labourmarket outcome for each...