Firms’ recruitment practices: the powers of segmentation and of valuation

Guillemette de Larquier and Géraldine Rieucau

Cambridge Journal of Economics, 2024, vol. 48, issue 6, 1091-1118

Abstract: This article proposes an original framework to show the plurality of matching dynamics, the processes by which firms and applicants meet and match in the labour market. It combines segmentation theory and economics of convention to characterise the powers of segmentation and valuation of firms when they recruit. Drawing on a national survey of French employers, the article identifies four matching dynamics. Thirty-five percent of the matches correspond to proximity-based matching dynamics, wherein firms do not control the candidates’ profiles. Thirty-four percent of matches result from standard dynamics and 17% from professional-based dynamics. In both cases, firms know the outline of the offer, evaluated through personalised criteria. Partnership-based matching dynamics (14% of the matches) are relatively open for candidates placed by intermediaries, whose evaluation is standardised. The article argues that no matching dynamic is more effective than others, and that employment policies must adapt to the plurality of labour market functioning.

Keywords: Labour market segmentation; Economics of convention; Recruitment; Valuation; Matching dynamics (search for similar items in EconPapers)
Date: 2024
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