Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227205 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13678
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
administrative data
survey data
labor selection
vacancies
recruiting intensity
JEL: 
E24
J63
Document Type: 
Working Paper

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