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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, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0508006
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    Cited by:

    1. Michèle Forté & 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.
    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, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 20, pages 1769-1823, Elsevier.
    4. Olugbenga Ajilore, 2012. "Did the Work Opportunity Tax Credit Cause Subsidized Worker Substitution?," Economic Development Quarterly, , vol. 26(3), pages 231-237, August.
    5. Martina Rebien & Michael Stops & Anna Zaharieva, 2020. "Formal Search And Referrals From A Firm'S Perspective," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(4), pages 1679-1748, November.
    6. 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.
    7. Guillemette de Larquier & Géraldine Rieucau, 2017. "Job ads: A public but targeted information. A French Labour Force Surveys analysis (2003-2012) [Les annonces d’offre d’emploi : une information publique mais ciblée. Exploitation de l’enquête Emploi (2003-2012)]," Post-Print hal-01837156, HAL.
    8. Weinstein, Russell, 2018. "Employer screening costs, recruiting strategies, and labor market outcomes: An equilibrium analysis of on-campus recruiting," Labour Economics, Elsevier, vol. 55(C), pages 282-299.
    9. 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.
    10. Matthieu Manant & Serge Pajak & Nicolas Soulié, 2019. "Can social media lead to labor market discrimination? Evidence from a field experiment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 225-246, April.
    11. Gürtzgen, Nicole & Pohlan, Laura, 2024. "Do employers learn more from referrals than from other recruitment channels?," Labour Economics, Elsevier, vol. 89(C).
    12. 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.
    13. Pinoli, Sara, 2007. "Employment Protection and Labor Productivity: Positive or Negative?," MPRA Paper 11775, University Library of Munich, Germany.
    14. 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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