Hunting for talent: Firm-driven labor market search in the United States

70 Pages Posted: 9 May 2020 Last revised: 25 Jul 2022

See all articles by Ines Black

Ines Black

Duke University - Fuqua School of Business

Sharique Hasan

Duke University - Fuqua School of Business

Rembrand Koning

Harvard University - Business School (HBS)

Date Written: April 15, 2020

Abstract

We analyze the phenomenon of firm-driven labor market search, where firms increasingly "hunt'" for talent rather than relying on workers to apply to vacancies. Our methodology leverages three approaches. We develop a model that incorporates firm-driven search and derive equilibrium conditions under which firms use this channel. We test our model's predictions using two data sources. Data from a nationally representative survey of 10,000 workers shows that the percentage hired through recruiting has increased from 4.9% in 1991, to 14.3% in 2022. This share is larger for higher-skilled workers and those with online profiles on LinkedIn. We complement this analysis with data on the near universe of online job postings from 2010 to 2020. We find that firms, especially those with high-skill demand, have increased by 50% the search for recruiters with the ability to scour the internet for passive candidates.

Keywords: Hiring, Networks, Referrals, Strategy, Outbound Recruiting, Labor Markets, Search and Match

JEL Classification: J24,J64,M12,M51

Suggested Citation

Black, Ines and Hasan, Sharique and Koning, Rembrand, Hunting for talent: Firm-driven labor market search in the United States (April 15, 2020). Available at SSRN: https://ssrn.com/abstract=3576498 or http://dx.doi.org/10.2139/ssrn.3576498

Ines Black

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

Sharique Hasan (Contact Author)

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

Rembrand Koning

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Boston, MA 02163
United States

HOME PAGE: http://www.remkoning.com

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