Monday, August 26, 2013

27 August 2013: Statistical Externalities and the Labour Market in the Digital Age

Ananya Sen
University of Toulouse

We examine whether a reduction in the cost of applying for jobs that leads to an increase in the number of candidates applying for jobs at a firm, may make the firm worse off. We build a model where there is worker heterogeneity and firms can choose to screen workers at a cost. In equilibrium, a reduction in application costs can lower firm payoffs by raising the number of applications from workers who, on average, are of lower quality than those who apply when application costs are high. An additional candidate can impose a negative externality on the firm by adversely affecting the statistical quality of its candidate pool. We discuss applications to the phenomenon of attention congestion through advances in digital technology.

Date: August 27, 2013
Time: 04:00 P.M.

Seminar Room 2
Indian Statistical Institute Delhi Centre,
7, S. J. S. Sansanwal Marg,
New Delhi-110016 (INDIA)


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