Obama, Walmart, and screening

This article reports that President Obama has reached an agreement with some large firms to "establish best practices" for firms to follow when people with gaps in their employment history apply for jobs. (I guess. The article does not state exactly what the practices would cover.) "'[F]olks are looking at that gap in the resume and they're weeding them out before these folks even get a chance for an interview,' said Obama."

This article is a good introduction to screening, asymmetric information, and adverse selection.

Here are some interesting questions.

1. Why would employers use employment gaps as a screen?
2. Do you think that the screen is efficient? If not, what is a better way to screen applicants. Remember to consider the cost of applying the screen when measuring efficiency.
3. Do you think that the screen is more effective following periods of high unemployment or periods of low unemployment?
4. Do you think that the screen is more effective for older workers or younger workers?
5. Do you think that the screen is more effective for men or women?