Employers' Search and the Efficiency of Matching
AbstractUnskilled workers in low productivity jobs typically experience higher labour turnover. This paper shows how this empirical finding is related to variation in the efficiency of the matching process across occupations. A simple theoretical model of employers' search shows that firms find it optimal to invest relatively little in advertisement and screening when recruiting for low productivity jobs. This generates more separations and higher turnover at the bottom than at the top of the jobs' distribution. The analysis of a unique sample of British hirings, containing detailed information about employers' recruitment practices, shows that more intensive recruitment leads to matches of better quality that pay higher wages, last longer and make employers more satisfied with the person taken on.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1862.
Length: 38 pages
Date of creation: Nov 2005
Date of revision:
Publication status: published in: British Journal of Industrial Relations, 2011, 49(1), 25-53
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Other versions of this item:
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-09 (All new papers)
- NEP-HRM-2005-12-09 (Human Capital & Human Resource Management)
- NEP-LAB-2005-12-09 (Labour Economics)
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