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We provide an information-based theory of matching efficiency fluctuations. Rationally inattentive firms have limited capacity to process information and cannot perfectly identify suitable applicants. During recessions, higher losses from hiring unsuitable workers cause firms to be more...
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Past research suggests that transparency during personnel selection procedures, that is, revealing to candidates the dimensions on which their performance is being assessed, increases both fairness and candidates’ performance. Two experiments challenge this assumption and propose that this...
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