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Firm Recruitment Behaviour: Sequential or Non-Sequential Search?

Author

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  • van Ommeren, Jos

    () (Vrije Universiteit Amsterdam)

  • Russo, Giovanni

    () (European Centre for the Development of Vocational Training (Cedefop))

Abstract

In the extensive job search literature, studies assume either sequential or non-sequential search. Which assumption is more reasonable? This paper introduces a novel method to test the hypothesis that firms search sequentially based on the relationship between the number of (rejected) job applicants and the number of employees hired. We use data compiled from filled vacancies for the Netherlands. Different types of search methods are distinguished. Our results imply that when firms use advertising, private or public employment agencies, which together cover about 45 percent of filled vacancies, sequential search is rejected. For about 55 percent of filled vacancies however, sequential search cannot be rejected. In line with theoretical considerations, when firms use search methods that rely on social networks, sequential search cannot be rejected.

Suggested Citation

  • van Ommeren, Jos & Russo, Giovanni, 2009. "Firm Recruitment Behaviour: Sequential or Non-Sequential Search?," IZA Discussion Papers 4008, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4008
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    Cited by:

    1. Domenico Ferraro, 2018. "The Asymmetric Cyclical Behavior of the U.S. Labor Market," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 30, pages 145-162, October.
    2. Fernández-Blanco, Javier & Preugschat, Edgar, 2018. "On the effects of ranking by unemployment duration," European Economic Review, Elsevier, vol. 104(C), pages 92-110.
    3. Domenico Ferraro, 2018. "The Asymmetric Cyclical Behavior of the U.S. Labor Market," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 30, pages 145-162, October.

    More about this item

    Keywords

    sequential search; recruitment;

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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