Wednesday, September 26, 2012

Discimination Against the Unemployed

Kevin Drum cites a new study that shows, "If you've been out of work for a year, ...It's just really hard to get anyone to give you a chance." 

The red line is how likely employers are to call back when the economy is bad (during a recession). In bad times employers do not discriminate much against people who have been out of work a long time.  They don't call anyone back much!  The blue line shows that employers greatly discriminate against people who have been out of work for more than twelve months.  Is it statistical discrimination?