Doctoral Dissertation Research in Economics and Public Policy: Employer Preference for Applicants based on Geographic Location - A Resume Audit

Carnegie Mellon University, Pittsburgh PA

Investigators

Abstract

Abstract There is significant and persistent heterogeneity in unemployment rates and labor earnings across labor markets in the US, contributing to overall economic inequality. Developments since the 1990s indicate that migration has declined even as job postings through websites expanded access to and awareness of employment opportunities beyond a worker’s location of origin. This project explores the geographic aspects of online job postings by exploring access to job opportunities for job seekers who are local and non-local. The research investigates employer preference for job applicants by considering whether applicants reside close by the job site or farther away. The project conducts a correspondence experiment that randomly assigns the resumes of fictitious candidates with different geographical locations to employers who are actively seeking employees. The project examines employer callback rates by considering the distance of candidates from job locations to understand differential employer preference for employees’ location of origin. The project further constructs a descriptive and mathematical theory for why employers may prefer local workers over non-local workers. Residents of depressed local labor markets often incur welfare costs associated with remaining in these areas, and migration in favor of expected income gains may serve as an important mechanism for equalization across regions. This research project investigates labor market opportunities in relation to the geographic origin of job applicants. The project employs a resume audit study to understand employers’ hiring preferences in relation to spatial factors by randomly assigning fictitious applicants to job postings, by reflecting varying locations of residence, level of education, and gender of applicants. The project develops a theoretical model that rationalizes potential mechanisms for why employers engage in place-based discrimination and prefer local applicants. By embedding these mechanisms in the resume audit research design, the project explores heterogeneous effects of applicant location on employer hiring preferences. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.