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Employers' Search and the Efficiency of Matching

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  • Michele Pellizzari

Abstract

Unskilled workers in low productivity jobs typically experience higher labour turnover. This article shows how this finding is related to variation in the efficiency of the matching process across occupations. If employers find it less profitable to invest in search and screening activities when recruiting for low-productivity jobs, matches at the lower end of the occupation distribution will be more prone to separation. 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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  • Michele Pellizzari, 2011. "Employers' Search and the Efficiency of Matching," British Journal of Industrial Relations, London School of Economics, vol. 49(1), pages 25-53, March.
    • Handle: RePEc:bla:brjirl:v:49:y:2011:i:1:p:25-53
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    File URL: http://hdl.handle.net/10.1111/j.1467-8543.2009.00770.x
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    Cited by:

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    2. Koch, Michael & Egger, Hartmut, 2013. "Trade and the Firm-Internal Allocation of Workers to Tasks," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79841, Verein für Socialpolitik / German Economic Association.
    3. Caferra, Rocco & Morone, Andrea, 2019. "Tax Morale and Perceived Intergenerational Mobility: a Machine Learning Predictive Approach," MPRA Paper 93171, University Library of Munich, Germany.
    4. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2010. "Inequality and Unemployment in a Global Economy," Econometrica, Econometric Society, vol. 78(4), pages 1239-1283, July.
    5. bernhard Boockmann, 2014. "Offshoring Potential and Employment Dynamics," IAW Discussion Papers 111, Institut für Angewandte Wirtschaftsforschung (IAW).
    6. Sengul, Gonul, 2017. "Learning about match quality: Information flows and labor market outcomes," Labour Economics, Elsevier, vol. 46(C), pages 118-130.
    7. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
    8. Moreno Baruffini, 2013. "An agent-based simulation of the Swiss labour market : an alternative for the labour market policy evaluation," ERSA conference papers ersa13p216, European Regional Science Association.
    9. Véronique Rémy & Véronique Simonnet, 2023. "What is the best website for recruiting?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 62(4), pages 359-379, October.
    10. Ian Gregory-Smith & Brian G. M. Main, 2016. "Testing the Participation Constraint in the Executive Labour Market," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(4), pages 399-426, September.
    11. Pouliakas, Konstantinos & Russo, Giovanni, 2015. "Heterogeneity of Skill Needs and Job Complexity: Evidence from the OECD PIAAC Survey," IZA Discussion Papers 9392, Institute of Labor Economics (IZA).
    12. 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.
    13. Berlingieri, Francesco & Erdsiek, Daniel, 2012. "How relevant is job mismatch for German graduates?," ZEW Discussion Papers 12-075, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    JEL classification:

    • 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 - - Personnel Economics - - - Firm Employment Decisions; Promotions

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