Working Paper: CEPR ID: DP14727
Authors: Carlos Carrillo-Tudela; Hermann Gartner; Leo Kaas
Abstract: Recruitment behavior is important for the matching process in the labor market. Using unique linked survey-administrative data, we explore the relationships between hiring and recruitment policies. Faster hiring goes along with higher search effort, lower hiring standards and more generous wages. To analyze the mechanisms behind these patterns, we develop a directed search model in which firms use different recruitment margins in response to productivity shocks. The calibrated model points to an important role of hiring standards for matching efficiency and for the impact of labor market policy, whereas search effort and wage policies play only a minor role.
Keywords: vacancies; recruitment; labor market; matching
JEL Codes: E24; J23; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| faster hiring (M51) | higher search effort (D83) |
| faster hiring (M51) | lower hiring standards (J89) |
| faster hiring (M51) | more generous wages (J38) |
| hiring standards (M51) | matching efficiency (C52) |
| search effort (C90) | job-filling rates (J68) |
| wage generosity (J31) | hiring rates (J63) |
| recruitment policies (J68) | job-filling rates (J68) |
| recruitment measures (M51) | job-finding rates (J68) |