Hiring Frictions and the Promise of Online Job Portals: Evidence from India

A. Nilesh Fernando, Niharika Singh and Gabriel Tourek

American Economic Review: Insights, 2023, vol. 5, issue 4, 546-62

Abstract: Despite the growing prominence of online job portals, firms remain reluctant to hire outside traditional recruitment networks. We find that experimentally providing firms with a combination of advertising and the ability to verify applicant identity increases portal-based hiring by 68 percent and the likelihood of filling a vacancy by 11 percent. Advertising attracts more skilled applicants, while verification enables the screening of unfamiliar applicants. Portal-based hires are retained beyond the standard assessment period, suggesting that they are well suited to the vacancies. Firms assigned only advertising also attract more skilled applicants, but providing neither advertising nor verification alone increases hiring.

JEL-codes: D22 J23 J24 J63 M51 O15 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1257/aeri.20220566

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