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Macro Recruiting Intensity from Micro Data

Author

Listed:
  • Simon Mongey

    (University of Chicago)

  • Giovanni L. Violante

    (Princeton University)

Abstract

We merge QCEW and JOLTS microdata to study the recruiting intensity of firms in the cross section and over time. We show that vast establishment-level heterogeneity in vacancy filling rates is entirely explained by differences in gross hiring rates. We provide theory that supports these empirical facts and, through the lens of this theory, aggregate firm-level decisions and data into an empirical measure of aggregate recruiting intensity (ARI). We find that procyclicality of ARI is primarily due to cutting recruiting effort in slack labor markets. This leads us to formulate an ARI index easily computable from publicly available macroeconomic time series. Declining ARI in the Great Recession accounted for much of the increase in unemployment, but little of its persistence.

Suggested Citation

  • Simon Mongey & Giovanni L. Violante, 2020. "Macro Recruiting Intensity from Micro Data," Working Papers 2020-67, Princeton University. Economics Department..
    • Handle: RePEc:pri:econom:2020-67
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    File URL: http://violante.mycpanel.princeton.edu/Workingpapers/mongey_violante_v10.pdf
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    References listed on IDEAS

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    Cited by:

    1. Adrien Bilal & Niklas Engbom & Simon Mongey & Giovanni L. Violante, 2022. "Firm and Worker Dynamics in a Frictional Labor Market," Econometrica, Econometric Society, vol. 90(4), pages 1425-1462, July.
    2. Bertheau, Antoine, 2021. "Employer Search Behavior: Reasons for Internal Hiring," Labour Economics, Elsevier, vol. 73(C).
    3. Carlos Carrillo-Tudela & Hermann Gartner & Leo Kaas, 2023. "Recruitment Policies, Job-Filling Rates, and Matching Efficiency," Journal of the European Economic Association, European Economic Association, vol. 21(6), pages 2413-2459.
    4. Serdar Birinci & Kurt Gerrard See, 2018. "How Should Unemployment Insurance vary over the Business Cycle?," 2018 Meeting Papers 69, Society for Economic Dynamics.
    5. Serdar Birinci & Kurt See, 2019. "Labor Market Responses to Unemployment Insurance: The Role of Heterogeneity," Working Papers 2019-022, Federal Reserve Bank of St. Louis, revised Nov 2021.
    6. Lochner, Benjamin & Merkl, Christian & Stüber, Heiko & Gürtzgen, Nicole, 2021. "Recruiting intensity and hiring practices: Cross-sectional and time-series evidence," Labour Economics, Elsevier, vol. 68(C).
    7. Steven J. Davis & Brenda Samaniego de la Parra, 2024. "Application Flows," NBER Working Papers 32320, National Bureau of Economic Research, Inc.
    8. Forsythe, Eliza & Weinstein, Russell, 2021. "Recruiting Intensity, Hires, and Vacancies: Evidence from Firm-Level Data," IZA Discussion Papers 14138, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Aggregate Matching Efficiency; Firm Heterogeneity; Recruiting Intensity; Unemployment; Vacancies.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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