Abstract

Abstract Using a randomized audit study design, we find that the job callback rate for applicants with a long, illness-related employment gap caused by cancer is lower than that of the newly unemployed but significantly higher than those whose employment gap is unexplained. Our results suggest that a credible explanation of an employment gap can substantially reduce its scarring effect and that workers with a previous illness do not face a uniquely large rehiring penalty. While previous research shows that jobless spells reduce employment prospects, our results and model provide new insight into the signalling process underlying those findings.

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