April 2011

IZA DP No. 5684: Managerial Valuation of Applicant Credentials and Personal Traits in Hiring Decisions

We study how managers value applicant credentials and personal traits in hiring decisions. Using the ordered probit model, we confirm previous results – managers rank applicant traits higher than credentials. However, we also uncover patterns not previously observed – managerial valuations of some of these characteristics are dependent on managers' perception of the overall state of the economy, on firm and immediate workplace characteristics, and on managers' personal characteristics. Manager valuations of credentials vary with a large number of factors; this is not so for applicant personal traits. This is not surprising as most managers view the five traits considered "as extremely important."