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Hiring Frictions and the Promise of Online Job Portals: Evidence from India

Author

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  • A. Nilesh Fernando
  • Niharika Singh
  • Gabriel Tourek

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.

Suggested Citation

  • A. Nilesh Fernando & Niharika Singh & Gabriel Tourek, 2023. "Hiring Frictions and the Promise of Online Job Portals: Evidence from India," American Economic Review: Insights, American Economic Association, vol. 5(4), pages 546-562, December.
    • Handle: RePEc:aea:aerins:v:5:y:2023:i:4:p:546-62
    DOI: 10.1257/aeri.20220566
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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