Corporate Hiring under COVID-19: Financial Constraints and the Nature of New Jobs

81 Pages Posted: 11 May 2020 Last revised: 4 Aug 2022

See all articles by Murillo Campello

Murillo Campello

Cornell University - Samuel Curtis Johnson Graduate School of Management; National Bureau of Economic Research (NBER)

Gaurav Kankanhalli

University of Pittsburgh - Katz Graduate School of Business

Pradeep Muthukrishnan

Tulane University, A.B. Freeman School of Business, Department of Finance; Cornell University, Samuel Curtis Johnson Graduate School of Management, Department of Finance

Multiple version iconThere are 2 versions of this paper

Date Written: May 8, 2020

Abstract

Big data on job vacancy postings reveal multiple facets of the impact of Covid-19 on corporate hiring. Firms disproportionately cut on hiring for high-skill positions, with financially constrained firms reducing skilled hiring the most. Applying machine learning methods to job-ad texts, we find that firms have skewed their hiring towards operationally-core functions. New positions display greater flexibility regarding schedules and tasks. These firm-led hiring responses are robust to a host of labor supply-side controls capturing the "great resignation." While job posting levels show signs of recovery starting in late-2020, changes to the job posting descriptions and skill profiles seem long-lived in tests running through early 2022. Financial constraints amplify pandemic-induced changes to the nature of positions firms seek to fill, with constrained firms' new hires witnessing greater adjustments to jobs roles and employment arrangements.

Keywords: Covid-19, Machine learning, Corporate hiring, Human capital, Financial constraints, Work from home

JEL Classification: E24, J23, G31, G38, G39

Suggested Citation

Campello, Murillo and Kankanhalli, Gaurav and Muthukrishnan, Pradeep, Corporate Hiring under COVID-19: Financial Constraints and the Nature of New Jobs (May 8, 2020). Available at SSRN: https://ssrn.com/abstract=3596655 or http://dx.doi.org/10.2139/ssrn.3596655

Murillo Campello

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

114 East Avenue
369 Sage Hall
Ithaca, NY 14853
United States

HOME PAGE: http://www.johnson.cornell.edu/Faculty-And-Research/Profile.aspx?id=mnc35

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138

Gaurav Kankanhalli (Contact Author)

University of Pittsburgh - Katz Graduate School of Business ( email )

Pittsburgh, PA 15260
United States

Pradeep Muthukrishnan

Tulane University, A.B. Freeman School of Business, Department of Finance ( email )

7 McAlister Drive
New Orleans, LA
United States

HOME PAGE: http://www.pradeepmuthukrishnan.com

Cornell University, Samuel Curtis Johnson Graduate School of Management, Department of Finance ( email )

Ithaca, NY
United States

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