Recruiting Intensity and Hiring Practices: Cross-Sectional and Time-Series Evidence

33 Pages Posted: 15 Sep 2020

See all articles by Benjamin Lochner

Benjamin Lochner

Institute for Employment Research (IAB); University of Erlangen-Nürnberg (FAU)

Christian Merkl

Friedrich-Alexander-Universität Erlangen-Nürnberg

Heiko Stueber

Government of the Federal Republic of Germany - Institute for Employment Research (IAB); Friedrich-Alexander-Universität Erlangen-Nürnberg

Nicole Gürtzgen

ZEW – Leibniz Centre for European Economic Research

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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.

Keywords: administrative data, survey data, labor selection, vacancies, recruiting intensity

JEL Classification: E24, J63

Suggested Citation

Lochner, Benjamin and Merkl, Christian and Stueber, Heiko and Guertzgen, Nicole, Recruiting Intensity and Hiring Practices: Cross-Sectional and Time-Series Evidence. IZA Discussion Paper No. 13678, Available at SSRN: https://ssrn.com/abstract=3691391

Benjamin Lochner (Contact Author)

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

University of Erlangen-Nürnberg (FAU) ( email )

Germany

Christian Merkl

Friedrich-Alexander-Universität Erlangen-Nürnberg ( email )

Lange Gasse 20
Lange Gasse 20,
Nürnberg, 90403
Germany

Heiko Stueber

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

Friedrich-Alexander-Universität Erlangen-Nürnberg ( email )

Lange Gasse 20
Lange Gasse 20,
Nürnberg, 90403
Germany

Nicole Guertzgen

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

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