Hiring Frictions and the Promise of Online Job Portals: Evidence from India
American Economic Review: Insights
vol. 5,
no. 4, December 2023
(pp. 546-62)
Abstract
Despite the growing prominence of online job portals, firms remain reluctant to hire outside traditional recruitment networks. We find that experimentally providing firms with a combination of advertising and the ability to verify applicant identity increases portal-based hiring by 68 percent and the likelihood of filling a vacancy by 11 percent. Advertising attracts more skilled applicants, while verification enables the screening of unfamiliar applicants. Portal-based hires are retained beyond the standard assessment period, suggesting that they are well suited to the vacancies. Firms assigned only advertising also attract more skilled applicants, but providing neither advertising nor verification alone increases hiring.Citation
Fernando, A. Nilesh, Niharika Singh, and Gabriel Tourek. 2023. "Hiring Frictions and the Promise of Online Job Portals: Evidence from India." American Economic Review: Insights, 5 (4): 546-62. DOI: 10.1257/aeri.20220566Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- J23 Labor Demand
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J63 Labor Turnover; Vacancies; Layoffs
- M51 Personnel Economics: Firm Employment Decisions; Promotions
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration