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Employers' Search and the Efficiency of Matching

Author Info

  • Pellizzari, Michele

    ()

    (University of Geneva)

Abstract

Unskilled 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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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1862.

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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
Handle: RePEc:iza:izadps:dp1862
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Keywords: recruitment; matching; labour turnover; hiring;

Other versions of this item:

Find related papers by 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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  1. van Ours, J.C. & Ridder, G., 1992. "Vacancies and recruitment of new employees," Other publications TiSEM 9acc708a-0885-46a2-aef5-7, Tilburg University, School of Economics and Management.
  2. Cees Gorter & Jos Van Ommeren, 1999. "Sequencing, timing and filling rates of recruitment channels," Applied Economics, Taylor & Francis Journals, vol. 31(10), pages 1149-1160.
  3. Farber, Henry S., 1999. "Mobility and stability: The dynamics of job change in labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 37, pages 2439-2483 Elsevier.
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  5. McCall, Brian P, 1990. "Occupational Matching: A Test of Sorts," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 45-69, February.
  6. Michele Pellizzari, 2004. "Do friends and relatives really help in getting a good job?," LSE Research Online Documents on Economics 19980, London School of Economics and Political Science, LSE Library.
  7. van Ours, Jan & Ridder, Geert, 1991. "Cyclical variation in vacancy durations and vacancy flows : An empirical analysis," European Economic Review, Elsevier, vol. 35(5), pages 1143-1155, July.
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  9. Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-60, December.
  10. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  11. Topel, Robert, 1993. "What Have We Learned from Empirical Studies of Unemployment and Turnover?," American Economic Review, American Economic Association, vol. 83(2), pages 110-15, May.
  12. van Ours, Jan & Ridder, Geert, 1992. "Vacancies and the Recruitment of New Employees," Journal of Labor Economics, University of Chicago Press, vol. 10(2), pages 138-55, April.
  13. Harry J. Holzer, 1990. "Job Vacancy Rates in the Firm: An Empirical Analysis," NBER Working Papers 3524, National Bureau of Economic Research, Inc.
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  15. Manning, Alan, 2000. " Pretty Vacant: Recruitment in Low-Wage Labour Markets," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 747-70, Special I.
  16. Pissarides, Christopher A, 1984. "Search Intensity, Job Advertising, and Efficiency," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 128-43, January.
  17. Giuseppe Moscarini, 2001. "Excess Worker Reallocation," Review of Economic Studies, Oxford University Press, vol. 68(3), pages 593-612.
  18. Dale T. Mortensen, 1978. "Specific Capital and Labor Turnover," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 572-586, Autumn.
  19. Gorter, Cees & Hassink, Wolter H. J. & Russo, Giovanni, 2003. "The structure of hiring and labour market tightness," Economics Letters, Elsevier, vol. 80(1), pages 99-103, July.
  20. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1987. "Employer Size: The Implications for Search, Training, Capital Investment, Starting Wages, and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 5(1), pages 76-89, January.
  21. Harry J. Holzer & Lawrence F. Katz & Alan B. Krueger, 1991. "Job Queues and Wages," The Quarterly Journal of Economics, Oxford University Press, vol. 106(3), pages 739-768.
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Cited by:

  1. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2008. "Inequality and Unemployment in a Global Economy," NBER Working Papers 14478, National Bureau of Economic Research, Inc.
  2. Yannis M. Ioannides & Linda Datcher Loury, 2002. "Job Information Networks, Neighborhood Effects and Inequality," Discussion Papers Series, Department of Economics, Tufts University 0217, Department of Economics, Tufts University.
  3. Pouliakas, Konstantinos & Russo, Giovanni, 2015. "Heterogeneity of Skill Needs and Job Complexity: Evidence from the OECD PIAAC Survey," IZA Discussion Papers 9392, Institute for the Study of Labor (IZA).
  4. Berlingieri, Francesco & Erdsiek, Daniel, 2012. "How relevant is job mismatch for German graduates?," ZEW Discussion Papers 12-075, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. bernhard Boockmann, 2014. "Offshoring Potential and Employment Dynamics," IAW Discussion Papers 111, Institut für Angewandte Wirtschaftsforschung (IAW).
  6. 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.
  7. 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.
  8. Hartmut Egger & Michael Koch, 2013. "Trade and the Firm-Internal Allocation of Workers to Tasks," Working Papers 139, Bavarian Graduate Program in Economics (BGPE).

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