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Dynamics and Endogeneity of Firms' Recruitment Behavior

Author

Listed:
  • Christian Holzner

    (University of Munich and Ifo Institute)

  • Felix Ehrenfried

    (LMU Munich)

Abstract

We investigate determinants and dynamics of the search behavior of establishments by using a representative employer survey of the German labor market. By splitting employers into different subsamples according to their success in filling a vacancy we are able to reveal mechanics behind their behavior in finding new workers. We find that companies adjust their search behavior if they are not able to find suitable applicants within the intended search period, namely that they increase the number of search channels used. This increases the pool of applicants, however the share of suitable applicants decreases. By accounting for possible endogeneity within this search process we are able to explain puzzling results in the existing literature. Furthermore, evidence on the effectiveness of different search channels like the companies' network or the internal search is provided.

Suggested Citation

  • Christian Holzner & Felix Ehrenfried, 2017. "Dynamics and Endogeneity of Firms' Recruitment Behavior," 2017 Meeting Papers 1034, Society for Economic Dynamics.
    • Handle: RePEc:red:sed017:1034
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    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

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