Martellini, Paolo; Menzio, Guido - National Bureau of Economic Research - 2024
agent) is repeatedly faced with the opportunity of hiring one among several applicants to fill its vacancies. The firm is … their match with firm. A benevolent and unbiased labor market authority (the principal) enacts a hiring regulation (a direct …-revelation mechanism without transfers) in order to reduce the impact of the firm's bias on its hiring behavior. The hiring regulation is …