Working Paper: NBER ID: w19295
Authors: Peter Cappelli; Monika Hamori
Abstract: We examine an aspect of job search in the important context of executive-level jobs using a unique data set from a prominent executive search firm. Specifically, we observe whether or not executives pursue offers to be considered for a position at other companies. The fact that the initial call from the search firm, which we observe, is an exogenous event for the executive makes the context particularly useful. We use insights from the Multi-Arm Bandit problem to analyze the individual's decision as it emphasizes assessments of future prospects in the decision process, which are particularly relevant for executive careers. More than half the executives we observe were willing to be a candidate for a job elsewhere. Executives are more likely to search where their current roles are less certain and where their career experience has been broader. Search is more likely even for broader experience within the same employer. In the latter case, the array of likely opportunities is also broader, making search more useful.
Keywords: executive search; job search behavior; multi-arm bandit problem; career mobility; executive labor markets
JEL Codes: M12; M51
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Uncertainty in current roles (D89) | Likelihood of job search (J64) |
| Longer tenure in current organization (M51) | Likelihood of job search (J64) |
| Broader career experiences (J62) | Likelihood of job search (J64) |
| Attractiveness of current position (J62) | Likelihood of job search (J64) |