Question
1.In 2007 the state of Washington banned firms from checking job applicants' credit scores. Several other states followed suit. The intention of the ban is
1.In 2007 the state of Washington banned firms from checking job applicants' credit scores. Several other states followed suit. The intention of the ban is to promote equal opportunities for all applicants. An applicant with a low credit score is likely to be a minority or young (less than 22 years of age). Clifford and Shoad (2016) find that these laws results in fewer jobs for the young and minorities, not more. Use a discussion of informational economics and signaling to explain these results (Akerlof). Why would a firm want a potential employee with a high credit score? Can you theorize an explanation that will conform with Clifford and Shoals observations? Paper is linked below.
... http://scholar.harvard.edu/files/shoag/files/no_more_credit_score_employer_credit_check_bans_and_signal_sub.pdf?m=14483
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started