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How do businesses recruit?

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  • R. Jason Faberman

Abstract

Most economic theories of hiring and job seeking assume that businesses post vacancies when they demand more labor. Workers then apply for the job, and the most qualified candidate is hired. However, as those who have ever recruited or applied for a job know, the recruiting process is considerably more complex. In this article, Jason Faberman discusses some recent research on how employers recruit. It shows that the extent to which a business uses various recruiting channels depends on the characteristics of the employer, how fast the employer is growing (or contracting), and the overall state of the economy.

Suggested Citation

  • R. Jason Faberman, 2011. "How do businesses recruit?," Business Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 9-17.
  • Handle: RePEc:fip:fedpbr:y:2011:i:q4:p:9-17:n:11-11
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    File URL: http://www.philadelphiafed.org/research-and-data/publications/business-review/2011/q4/brq411_how-do-businesses-recruit.pdf
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    References listed on IDEAS

    as
    1. Gary Solon & Ryan Michaels & Michael W. L. Elsby, 2009. "The Ins and Outs of Cyclical Unemployment," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 84-110, January.
    2. Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 1-19.
    3. Steven J. Davis & R. Jason Faberman & John C. Haltiwanger, 2013. "The Establishment-Level Behavior of Vacancies and Hiring," The Quarterly Journal of Economics, Oxford University Press, vol. 128(2), pages 581-622.
    4. Shigeru Fujita & Garey Ramey, 2009. "The Cyclicality Of Separation And Job Finding Rates," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 415-430, May.
    5. Barnichon, Regis, 2010. "Building a composite Help-Wanted Index," Economics Letters, Elsevier, vol. 109(3), pages 175-178, December.
    6. Jed Devaro, 2005. "Employer Recruitment Strategies and the Labor Market Outcomes of New Hires," Economic Inquiry, Western Economic Association International, vol. 43(2), pages 263-282, April.
    7. Shigeru Fujita, 2007. "What do worker flows tell us about cyclical fluctuations in employment?," Business Review, Federal Reserve Bank of Philadelphia, issue Q2, pages 1-10.
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    Keywords

    Employment;

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