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Searching, ranking and hiring

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  • Russo, Giovanni

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Gorter, Cees
  • Schettkat, Ronald

Abstract

This paper analyses employers’ recruitment strategies (in terms of search channel used, and applicants’ characteristics) in response to different conditions on the relevant regional labour market. In particular we were able to formulate two hypotheses on the nature of the adjustments: (1) The use of the labour exchange office and the hiring of unemployed candidates are events more likely to happen in a slack regional labour market. The use of advertisement and the hiring of already employed job seekers are more likely to occur in presence of excess demand on the relevant regional labour market; (2) The process leading to the choice of the recruitment channel and the outcome of the recruitment process in terms of the characteristics of the hired applicants are correlated. The recruitment behaviour we find in our data is consistent with a theoretical ranking model (Blanchard and Diamond 1994) but it less likely to be induced by endogenous creation of good jobs during periods of excess demand as modelled in Pissarides (1994). In fact the composition of the educational requirements among the vacant jobs appears to be rather constant. This support the view that shifts in recruitment

Suggested Citation

  • Russo, Giovanni & Gorter, Cees & Schettkat, Ronald, 1997. "Searching, ranking and hiring," Serie Research Memoranda 0017, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:1997-17
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    References listed on IDEAS

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    1. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, vol. 38(6), pages 1287-1315, June.
    2. Holzer, Harry J, 1988. "Search Method Use by Unemployed Youth," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 1-20, January.
    3. Christopher A. Pissarides, 1994. "Search Unemployment with On-the-job Search," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 457-475.
    4. Diamond, Peter A, 1982. "Aggregate Demand Management in Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 881-894, October.
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    6. van Ours, Jan C, 1994. "Matching Unemployed and Vacancies at the Public Employment Office," Empirical Economics, Springer, vol. 19(1), pages 37-54.
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    8. Gorter, C. & van Ours, J. C., 1996. "The flow approach in the Netherlands; an empirical analysis using regional information," Other publications TiSEM c7df1291-aa11-473f-84ef-2, Tilburg University, School of Economics and Management.
    9. Gorter, Cees & Nijkamp, Peter & Rietveld, Piet, 1993. "The Impact of Employers' Recruitment Behaviour on the Allocation of Vacant Jobs to Unemployed Job Seekers," Empirical Economics, Springer, vol. 18(2), pages 251-269.
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    More about this item

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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