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The Labor Market Effects of Employer Recruitment Choice

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  • Jed DeVaro

    (Cornell University)

Abstract

I estimate a structural model of employer recruitment choice using data from the Multi-City Study of Urban Inequality (MCSUI), a 1992-1995 cross-sectional survey of employers and households in four metropolitan areas of the United States. I then conduct policy simulations to predict the effects of “information” policies such as the Workforce Investment Act of 1998 and “hiring incentive” policies such as the Welfare-to-Work and Work Opportunity tax credits. I find that the tax credits are superior to the information policy, both in improving placement rates for the low-skilled worker groups they target, and in increasing the starting wage distribution for these workers.

Suggested Citation

  • Jed DeVaro, 2005. "The Labor Market Effects of Employer Recruitment Choice," Labor and Demography 0508006, EconWPA.
  • Handle: RePEc:wpa:wuwpla:0508006
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    References listed on IDEAS

    as
    1. James Albrecht & Pieter A. Gautier & Susan Vroman, 2006. "Equilibrium Directed Search with Multiple Applications," Review of Economic Studies, Oxford University Press, vol. 73(4), pages 869-891.
    2. 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.
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    Cited by:

    1. Yannick Fondeur & Michèle Forté & Guillemette De Larquier & Sylvie Monchatre & Géraldine Rieucau & Marie Salognon & Ariel Sevilla & Carole Tuchszirer, 2012. "Pratiques de recrutement et sélectivité sur le marché du travail," Working Papers halshs-00971684, HAL.
    2. Blasco, Sylvie & Pertold-Gebicka, Barbara, 2013. "Employment policies, hiring practices and firm performance," Labour Economics, Elsevier, vol. 25(C), pages 12-24.
    3. Oyer, Paul & Schaefer, Scott, 2011. "Personnel Economics: Hiring and Incentives," Handbook of Labor Economics, Elsevier.
    4. Rebien, Martina & Stops, Michael & Zaharieva, Anna, 2017. "Formal search and referrals from a firm's perspective," Center for Mathematical Economics Working Papers 578, Center for Mathematical Economics, Bielefeld University.
    5. 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.
    6. Yannick Fondeur & Michèle Forté & Guillemette De Larquier & Sylvie Monchatre & Géraldine Rieucau & Marie Salognon & Ariel Sevilla & Carole Tuchszirer, 2012. "Pratiques de recrutement et sélectivité sur le marché du travail," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00971684, HAL.
    7. Manant, Matthieu & Pajak, Serge & Soulié, Nicolas, 2014. "Do recruiters 'like' it? Online social networks and privacy in hiring: a pseudo-randomized experiment," MPRA Paper 56845, University Library of Munich, Germany.
    8. Jed DeVaro & Michael Waldman, 2012. "The Signaling Role of Promotions: Further Theory and Empirical Evidence," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 91-147.
    9. Pinoli, Sara, 2007. "Employment Protection and Labor Productivity: Positive or Negative?," MPRA Paper 11775, University Library of Munich, Germany.
    10. Chi Zhou & Wansheng Tang & Ruiqing Zhao, 2017. "An uncertain search model for recruitment problem with enterprise performance," Journal of Intelligent Manufacturing, Springer, vol. 28(3), pages 695-704, March.

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    JEL classification:

    • J - Labor and Demographic Economics

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