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Secret Search

Author

Listed:
  • Andrew John
  • Ian King

Abstract

For high‐profile positions, should applicant identities be made public within the organization (“open search”) or kept confidential (“secret search”)? We construct a model where an organization seeks to hire, but where candidates' abilities are private information unless it uses open search. Rejected applicants, under open search, suffer disutility. We find the following: Salaries are lower under secret search, the expected ability of applicants decreases as the posted (open search) salary increases, secret search is preferred by organizations where quality of candidate is relatively unimportant, and organizations will, for some parameter values, choose secret search even when open search is more efficient.

Suggested Citation

  • Andrew John & Ian King, 2020. "Secret Search," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(1), pages 3-35, February.
    • Handle: RePEc:wly:iecrev:v:61:y:2020:i:1:p:3-35
    DOI: 10.1111/iere.12415
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    References listed on IDEAS

    as
    1. Galenianos, Manolis & Kircher, Philipp, 2009. "Directed search with multiple job applications," Journal of Economic Theory, Elsevier, vol. 144(2), pages 445-471, March.
    2. Ronald Wolthoff, 2010. "Applications and Interviews: A Structural Analysis of Two-Sided Simultaneous Search," 2010 Meeting Papers 114, Society for Economic Dynamics.
    3. Basov, Suren & King, Ian & Uren, Lawrence, 2014. "Worker heterogeneity, the job-finding rate, and technical change," European Economic Review, Elsevier, vol. 70(C), pages 159-177.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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