How do businesses recruit?

Abstract

Most economic theories of hiring and job seeking assume that businesses post vacancies when they demand more labor. Workers then apply for the job, and the most qualified candidate is hired. However, as those who have ever recruited or applied for a job know, the recruiting process is considerably more complex. In this article, Jason Faberman discusses some recent research on how employers recruit. It shows that the extent to which a business uses various recruiting channels depends on the characteristics of the employer, how fast the employer is growing (or contracting), and the overall state of the economy.Employment