Matching processes in the labour market an econometric study

Abstract

This paper presents empirical results on matching in the labour market in Marseilles (France). Using a sample of meetings between employers and workers organized by a local employment office, we infer from estimation results that selection among applicants is on the basis of their level of education. The strength of this selection bias is substantially caused by the poor quality of the screening performed by the employment office. Employers appear also to discriminate against the youngest applicants, the long-term unemployed and applicants of North-African extraction. These effects are alleviated when employers face a labour supply constraint in the labour market.