In this paper, I study a new amplification mechanism in search models that arises when workers can choose to search on the job and when, for endogenous reasons, employers reap higher benefits from contacting employed searchers. The motivation for on-the-job search in the model is job shopping, where workers look for jobs they find appealing and the appeal of a job to the worker is not observed ...

Abstract The use of Artificial Intelligence (AI) in the recruitment process is becoming a more common method for organisations to hire new employees. Despite this, there little consensus on whether AI should have widespread hiring process, and which contexts. In order bring clarity research findings, we propose HIRE (Human, (Artificial) Intelligence, Recruitment, Evaluation) framework with prim...

This paper analyzes whether it might be desir~ble for a firm to hire an overoptimistic manager to commit to a certain R&D strategy. I consider a Cournot model with an ex-ante R&D stage where firms can invest in cost reduction before product market competition takes place. I show that firms want to hire overoptimistic managers and argue that a manager's type may serve as a substitute for strateg...

The business people have not been exposed to all of this legal terminology. You tell them 'mentally ill' and their word, and I'm going to say it in Spanish, is 'loco', crazy. 'We don't hire a loco. We don't hire a crazy person.' Any kind-it doesn't matter if it is a manic-depressive-the word there is loco. 'We've got a loco crazy working with us.' It is sad but that is the way it is.

Equipment used in the construction domain is often hired in order to reduce cost and maintenance overhead. The cost of hire is dependent on the time period involved and does not take into account the actual use equipment has received. This paper presents our initial investigation into how physical objects augmented with sensing and communication technologies can measure use in order to enable n...

In the context of a standard equilibrium matching framework, this paper considers how a duration dependent unemployment insurance (UI) system affects the dynamics of unemployment and wages in an economy subject to stochastic job-destruction shocks. It establishes that re-entitlement e¤ects induced by a …nite duration UI program generate intertemporal transfers from …rms that hire in future boom...

I develop and estimate a model of expertise that weighs the tradeoffs of delegating loan decisions to loan officers. While loan officers can screen soft information, their preferences may distort decisions away from the lender’s objective. The model features rich heterogeneity (e.g. risk aversion, willingness to exert effort, and overconfidence) and addresses possible endogeneity with a natural...

A prominent theory of wage rigidity claims that a social norm against underbidding may prevent wages from falling to market clearing levels. This social norm may therefore cause downwardly rigid wages and involuntary unemployment. Recently performed questionnaire studies have thrown doubt on the conjecture that there is a social norm against underbidding. In this paper we experimentally show th...