The Runner-up Effect in the Allocation of Public Sector Jobs

Abstract:

We document that second-best-placed candidates to high-level public sector job openings are more likely than close third-best placed to be part of the final roster in subsequent job openings. The effect is strengthened if the runner-up participates in subsequent job openings where the selection committee was likely to remain unchanged. We find no robust effect on the probability of runners-up applying to subsequent job openings or finally getting the position. We interpret these results as evidence of selection committees having a positive bias when re-evaluating the runner-up.