Selective Firing and Lemons
In: Series: NRN Working Paper, NRN: The Austrian Center for Labor Economics and the Analysis of the Welfare State; No. 1405; gbv-ppn:836724976; RePEc:jku:nrnwps:2014_05; (2014)
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Zugriff:
This paper uses the Austrian Social Security Register (ASSD) to explore what information firms infer from the three common types of displacement: individual layoffs, individuals displaced due to a closure and individuals displaced due to a mass layoff. I bring together two strands of the literature, namely signaling and sorting and contribute to it in three ways. First I test whether the individual layoffs are the least productive, second I investigate whether individual layoffs are perceived as “lemons” (with a specific focus on the high ability individuals) and third I raise the question whether the “lemon” exists in the resulting matching pattern. Using the Abowd et al. (1999) model I show that the individual layoffs are the least productive measured by the person fixed effect. I confirm the signaling argument of Gibbons and Katz (1991) that individual layoffs are perceived as “lemons” also for high ability individuals, but I reject the argument of Gibbons and Katz (1991) against the matching model (Becker, 1973). Using three different measures of sorting, I find that the matching changes differentially for the different layoff groups. This leads to the tentative conclusion that both sorting and signaling take place after an individual job loss.
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Selective Firing and Lemons
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Autor/in / Beteiligte Person: | Weynandt, Michèle A. |
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Quelle: | Series: NRN Working Paper, NRN: The Austrian Center for Labor Economics and the Analysis of the Welfare State; No. 1405; gbv-ppn:836724976; RePEc:jku:nrnwps:2014_05; (2014) |
Veröffentlichung: | Johannes Kepler University Linz, NRN - The Austrian Center for Labor Economics and the Analysis of the Welfare State, 2014 |
Medientyp: | report |
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