Three recent audit studies on nonemployment discrimination report results consistent with the long-term jobless having significantly lower chances of being invited to job interviews. Given the design of previous studies unfavorable treatment can be due to a marginal preference among employers for hiring applicants with shorter spells or to stronger negative beliefs about the long-term nonemployed.
Using a résumé audit study, I explore the extent to which employers become forgiving of longer nonemployment spells when other merits appear on an applicant’s résumé: in this case relevant work experience.
Responses indicate a strong distaste for applicants with long spells of nonemployment—even in a situation characterized by observationally superior résumés in comparison to applicants with short nonemployment spells.
The findings reveal a sharp drop-off in the number of interview requests for those whose nonemployment spell topped six months, implying that those experiencing long job- less spells might become trapped in nonemployment, regardless of their prior experience. To interpret the findings, a nonstationary job search model under duration-dependent un- employment benefits and endogenous job search intensity is constructed. It is shown that in the spirit of Lockwood (1991), the model can generate a unique equilibrium for plausi- ble parameter values, with unemployment benefits expiration date becoming a focal point around which job search intensifies and employer screening becomes optimal.
- US / Long- term unemployment spans all industries, education levels, age groups, and among blue- and white-collar workers
- The Long-term Unemployed Face Severe Discrimination
- US Long-Term Unemployment / Why so many people have been out of work for so long
- Long-Term Unemployed in US – Only 11 percent have returned to steady, full-time employment a year later
- Long-term unemployment in US since 1950 – A chart