Corporate Hiring under COVID-19
61 Pages Posted: 11 May 2020 Last revised: 20 Jul 2021
Date Written: May 8, 2020
Big data on job vacancy postings reveal multiple dimensions of the impact of Covid-19 on corporate hiring. Firms disproportionately cut hiring for high-skill jobs (within-firm downskilling). Financially-constrained firms scaled back high-skill hiring most, as did firms with workforces more adaptable to "working-from-home." Applying machine learning to job-ad texts, we show that firms have skewed hiring towards operationally-core positions. New positions take longer to fill, displaying greater flexibility regarding schedules, tasks, and requirements. Financing constraints amplify pandemic-induced changes to the nature of positions firms seek to fill, with constrained firms' new hires witnessing larger adjustments to job roles and employment arrangements.
Keywords: Covid-19, Machine learning, Corporate hiring, Human capital, Financing constraints, Work from home
JEL Classification: E24, J23, G31, G38, G39
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