In this paper, we estimate tenure-performance profiles using unique panel data that contain detailed information on individual workers' performance. We find that a 10 percent increase in tenure leads to an increase in performance of 5.5 percent of a standard deviation. This translates to an...

We investigate wage differences between newly hired and incumbent employees. We show in a formal model that when employees care for wages as well as match-specific utility, incumbents earn less than new recruits if and only if firm-specific human capital is not too important. The existence and...

Using nine years of personnel records from a regional grocery store chain in the United States, this study examines the effect of manager ethnicity on the ethnic composition of employment at the firm's 73 stores. We estimate separate models with store fixed effects for several departments and...

The standard correspondence testing experiment does not identify whether employer prejudice drives discriminatory behavior when hiring. This article proposes a new methodology using geographic variation to explore the link between employer attitudes toward ethnic minorities and the ethnic...

The potentially adverse labor market effects of severance pay mandates are a continuing source of policy concern. In a seminal study, Lazear (1990) found that contract avoidance of severance pay firing costs was theoretically simple – a bonding scheme would do – but that empirically the...

We study how managers value applicant credentials and personal traits in hiring decisions. Using the ordered probit model, we confirm previous results -managers rank applicant traits higher than credentials. However, we also uncover patterns not previously observed - managerial valuations of...

In this paper we investigate how active labour market policy programmes affect firms' hiring strategies and, eventually, firms' performance. We focus on counseling and monitoring which may reduce search costs for employers, but which may have ambiguous effect on the employer-employee matching...