Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2021:8: Does online search improve the match quality of new hires?

Gerard van den Berg (), Nicole Gürtzgen, Benjamin Lochner and Laura Pohlan
Additional contact information
Gerard van den Berg: University of Groningen, Postal: University of Groningen
Nicole Gürtzgen: IAB,University of Regensburg, ZEW, Postal: IAB,UniversityofRegensburg,ZEW
Benjamin Lochner: UniversityofErlangen-N ̈urnberg,IAB, Postal: University of Erlangen-Nürnberg,IAB
Laura Pohlan: AB,ZEW, Postal: AB,ZEW

Abstract: This paper studies the effects of the high-speed internet expansion on the match quality of new hires. We combine data on internet availability at the local level with German individual register and vacancy data.Results show that internet availability has no major impact on the stability of new matches and their wages. We confirm these findings using vacancy data, by explicitly comparing match outcomes of online and non-online recruits. Further results show that online recruiting not only raises the number of applicants and the share of unsuitable candidates per vacancy, but also induces employers to post more vacancies.

Keywords: Matching; internet; informationalfriction; recruitingchannel; va-cancy; wage; jobduration

JEL-codes: C26; H40; J64; L96

71 pages, May 28, 2021

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