The labor market effects of employer recruitment choice
AbstractI analyze employer recruitment decisions using a dynamic, discrete-choice structural model that I estimate on a sample of clerical workers from the MCSUI, a large cross section of establishments in four metropolitan areas of the US. In the model, employers choose either informal recruitment methods (which generate a small but select applicant pool from which the employer can hire quickly) or formal methods (which create a large but less select applicant pool which the employer must screen intensively, delaying hiring times). I study the effects of three counterfactual simulations on recruitment strategies, starting wages, and vacancy durations: A wage subsidy, a policy designed to improve information about prospective matches, and an increase in the heterogeneity of prospective matches. I show that the effects of exogenous policy or environmental changes can be decomposed into "pure wage effects" that affect the wage offers employers post, holding constant their recruitment strategies, and "recruitment-wage effects" that involve changes in recruitment methods. The results show that changes in recruitment strategies represent an important channel through which changes in the economic environment affect the starting wages and vacancy duration for new hires.
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Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 52 (2008)
Issue (Month): 2 (February)
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Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- Jed DeVaro, 2005. "The Labor Market Effects of Employer Recruitment Choice," Labor and Demography 0508006, EconWPA.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James Albrecht, Pieter Gautier, & Susan Vroman, 2003.
"Equilibrium Directed Search with Multiple Application,"
gueconwpa~03-03-02, Georgetown University, Department of Economics.
- James Albrecht & Pieter A. Gautier & Susan Vroman, 2006. "Equilibrium Directed Search with Multiple Applications," Review of Economic Studies, Oxford University Press, vol. 73(4), pages 869-891.
- James Albrecht & Pieter Gautier & Susan Vroman, 2003. "Equilibrium Directed Search with Multiple Applications," Tinbergen Institute Discussion Papers 03-004/3, Tinbergen Institute, revised 14 Feb 2004.
- James Albrecht & Pieter Gautier, 2004. "Equilibrium Directed Search with Multiple Applications," Econometric Society 2004 Latin American Meetings 330, Econometric Society.
- Albrecht, James & Gautier, Pieter & Vroman, Susan, 2003. "Equilibrium Directed Search with Multiple Applications," IZA Discussion Papers 719, Institute for the Study of Labor (IZA).
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- Pinoli, Sara, 2007. "Employment Protection and Labor Productivity: Positive or Negative?," MPRA Paper 11775, University Library of Munich, Germany.
- Blasco, Sylvie & Pertold-Gebicka, Barbara, 2013.
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- Blasco, Sylvie & Pertold-Gebicka, Barbara, 2012. "Employment Policies, Hiring Practices and Firm Performance," IZA Discussion Papers 7013, Institute for the Study of Labor (IZA).
- Sylvie Blasco & Barbara Pertold-Gebicka, 2012. "Employment Policies, Hiring Practices and Firm Performance," Working Papers 2012-27, Centre de Recherche en Economie et Statistique.
- Jed DeVaro & Michael Waldman, 2012.
"The Signaling Role of Promotions: Further Theory and Empirical Evidence,"
Journal of Labor Economics,
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- DeVaro, Jed & Waldman, Michael, 2006. "The signaling role of promotions: Further theory and empirical evidence," MPRA Paper 1550, University Library of Munich, Germany.
- Pinoli, Sara, 2008. "Screening ex-ante or screening on-the-job? The impact of the employment contract," MPRA Paper 11429, University Library of Munich, Germany.
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