Recruiting Intensity and Hiring Practices: Cross-Sectional and Time-Series Evidence

Lochner B, Merkl C, Stüber H, Gürtzgen N (2021)

Publication Language: English

Publication Type: Journal article, Original article

Publication year: 2021

Journal

Labour Economics Elsevier

Book Volume: 68

URI: https://www.sciencedirect.com/science/article/pii/S0927537120301433?dgcid=author

DOI: 10.2139/ssrn.3691391

Abstract

Using the German IAB Job Vacancy Survey, we look into the black box of recruiting intensity and hiring practices from the employers’ perspective. Our paper evaluates three important channels for hiring —namely vacancy posting, the selectivity of hiring (labor selection), and the number of search channels— through the lens of an undirected search model. Vacancy posting and labor selection show a U-shape over the employment growth distribution. The number of search channels is also upward sloping for growing establishments, but relatively flat for shrinking establishments. We argue that growing establishments react to positive establishment-specific productivity shocks by using all three channels more actively. Furthermore, we connect the fact that shrinking establishments post more vacancies and are less selective than those with a constant workforce to churn triggered by employment-to-employment transitions. In line with our theoretical framework, all three hiring margins are procyclical over the business cycle.

Authors with CRIS profile

Benjamin Lochner Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik Christian Merkl Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik Heiko Stüber Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik

Related research project(s)

Wages, Heterogeneities, and Labor Market Dynamics SPP 1764: Der deutsche Arbeitsmarkt in der Globalisierung: Herausforderungen durch Handel, Technologie und Demografie Aug. 1, 2014 - Dec. 31, 2020

Involved external institutions

Institut für Arbeitsmarkt- und Berufsforschung (IAB) der Bundesagentur für Arbeit (BA) DE Germany (DE)

How to cite

APA:

Lochner, B., Merkl, C., Stüber, H., & Gürtzgen, N. (2021). Recruiting Intensity and Hiring Practices: Cross-Sectional and Time-Series Evidence. Labour Economics, 68. https://doi.org/10.2139/ssrn.3691391

MLA:

Lochner, Benjamin, et al. "Recruiting Intensity and Hiring Practices: Cross-Sectional and Time-Series Evidence." Labour Economics 68 (2021).

BibTeX: Download