Employer Screening Costs, Recruiting Strategies, and Labor Market Outcomes: An Equilibrium Analysis of On-Campus Recruiting

Research output: Working paper

Abstract

This paper analyzes labor market matching in the presence of search and informational frictions, by studying employer recruiting on college campuses. Based on employer and university interviews, I develop a model describing how firms choose target campuses given relevant frictions. The model predicts that with screening costs, the decision to recruit and the wage are driven by the selectivity of surrounding universities, in addition to the university's selectivity. The prediction has strong support using data from 39 finance and consulting firms and the Baccalaureate and Beyond. Structural estimation of an equilibrium model directly quantifies the impact of reducing screening costs.
Original languageEnglish (US)
Number of pages80
StatePublished - Aug 31 2017

Publication series

NameIZA Discussion Paper
No.10912

Fingerprint

Recruiting
Employers
Labor market outcomes
Selectivity
Screening
Friction
Costs
Equilibrium analysis
Labour market
Consulting
Wages
Prediction
Structural estimation
Finance

Keywords

  • labor market search
  • employer recruiting
  • return to university education
  • screening costs

Cite this

@techreport{868b765336b74e52b8248dad0bc571e9,
title = "Employer Screening Costs, Recruiting Strategies, and Labor Market Outcomes: An Equilibrium Analysis of On-Campus Recruiting",
abstract = "This paper analyzes labor market matching in the presence of search and informational frictions, by studying employer recruiting on college campuses. Based on employer and university interviews, I develop a model describing how firms choose target campuses given relevant frictions. The model predicts that with screening costs, the decision to recruit and the wage are driven by the selectivity of surrounding universities, in addition to the university's selectivity. The prediction has strong support using data from 39 finance and consulting firms and the Baccalaureate and Beyond. Structural estimation of an equilibrium model directly quantifies the impact of reducing screening costs.",
keywords = "labor market search, employer recruiting, return to university education, screening costs",
author = "Russell Weinstein",
year = "2017",
month = "8",
day = "31",
language = "English (US)",
series = "IZA Discussion Paper",
number = "10912",
type = "WorkingPaper",

}

TY - UNPB

T1 - Employer Screening Costs, Recruiting Strategies, and Labor Market Outcomes

T2 - An Equilibrium Analysis of On-Campus Recruiting

AU - Weinstein, Russell

PY - 2017/8/31

Y1 - 2017/8/31

N2 - This paper analyzes labor market matching in the presence of search and informational frictions, by studying employer recruiting on college campuses. Based on employer and university interviews, I develop a model describing how firms choose target campuses given relevant frictions. The model predicts that with screening costs, the decision to recruit and the wage are driven by the selectivity of surrounding universities, in addition to the university's selectivity. The prediction has strong support using data from 39 finance and consulting firms and the Baccalaureate and Beyond. Structural estimation of an equilibrium model directly quantifies the impact of reducing screening costs.

AB - This paper analyzes labor market matching in the presence of search and informational frictions, by studying employer recruiting on college campuses. Based on employer and university interviews, I develop a model describing how firms choose target campuses given relevant frictions. The model predicts that with screening costs, the decision to recruit and the wage are driven by the selectivity of surrounding universities, in addition to the university's selectivity. The prediction has strong support using data from 39 finance and consulting firms and the Baccalaureate and Beyond. Structural estimation of an equilibrium model directly quantifies the impact of reducing screening costs.

KW - labor market search

KW - employer recruiting

KW - return to university education

KW - screening costs

M3 - Working paper

T3 - IZA Discussion Paper

BT - Employer Screening Costs, Recruiting Strategies, and Labor Market Outcomes

ER -