This study investigates the market’s reaction to companies hiring accounting and finance officers directly from their external audit firms—the auditorto-client hiring practice referred to as the ‘‘revolving door.’’ The Sarbanes-Oxley Act (SOX) eliminated this hiring practice, reflecting concerns that such appointments may impair audit and financial reporting quality. However, it was also argued...

The adverse labor market effects of the Great Recession have intensified interest in policy efforts to spur job creation. The two most direct job creation policies are subsidies that go to workers and hiring credits that go to employers. Evidence indicates that worker subsidies are generally more effective at creating jobs. However, the unique circumstances of recovery from the Great Recession,...

This chapter reviews five key components of the recruitment process with regard to an aging workforce. First, targeted recruitment entails that organizations understand the needs, preferences, and strengths of older workers. Second, the recruitment message should communicate job and organizational characteristics that are attractive to older jobseekers. Third, the recruitment source should be c...

The authors examined how an applicant's handshake influences hiring recommendations formed during the employment interview. A sample of 98 undergraduate students provided personality measures and participated in mock interviews during which the students received ratings of employment suitability. Five trained raters independently evaluated the quality of the handshake for each participant. Qual...

Facebook, Twitter, LinkedIn – individuals have more opportunities than ever before to present themselves in public using social networking sites (SNSs). However, individuals tend to live segmented lives and often develop different selfpresentations depending on the audience. The combination of opportunities to present publicly and presenting different selfpresentations can have unforeseen impac...

The persistence of racial inequality in the U.S. labor market against a general backdrop of formal equality of opportunity is a troubling phenomenon that has significant ramifications on the design of hiring policies. In this paper, we show that current group disparate outcomes may be immovable even when hiring decisions are bound by an input-output notion of “individual fairness.” Instead, we ...

This paper characterizes the optimal labor market policy within a dynamic search model of the labor market which allows for workers’ risk aversion. In a …rst-best allocation of resources, unemployment bene…ts should provide perfect insurance against the unemployment risk, layo¤ taxes are necessary to induce employers to internalize the cost of dismissing an employee but should not be too high i...

This paper looks at the inclusion of excluded groups, notably the racial transformation of the South African university system. Both demand-side factors — are qualified black people hired as faculty? — and supply-side factors — are there enough qualified black people who can be hired as faculty? — need to be aligned. Prior evidence suggests that demand and supply both have both a psychological ...