Dynamics and Endogeneity of Firms' Recruitment Behavior

Christian Holzner and Felix Ehrenfried
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Felix Ehrenfried: LMU Munich

No 1034, 2017 Meeting Papers from Society for Economic Dynamics

Abstract: We investigate determinants and dynamics of the search behavior of establishments by using a representative employer survey of the German labor market. By splitting employers into different subsamples according to their success in filling a vacancy we are able to reveal mechanics behind their behavior in finding new workers. We find that companies adjust their search behavior if they are not able to find suitable applicants within the intended search period, namely that they increase the number of search channels used. This increases the pool of applicants, however the share of suitable applicants decreases. By accounting for possible endogeneity within this search process we are able to explain puzzling results in the existing literature. Furthermore, evidence on the effectiveness of different search channels like the companies' network or the internal search is provided.

Date: 2017
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Related works:
Journal Article: Dynamics and endogeneity of firms’ recruitment behaviour (2019)
Working Paper: Dynamics and endogeneity of firms' recruitment behaviour (2019)
Working Paper: Dynamics and Endogeneity of Firms' Recruitment Behaviour (2018)
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