EMPLOYER SEARCH, TRAINING, AND VACANCY DURATION

We develop a model of optimal employer search strategy when information about match quality is endogenous. The model is tested using four data sets, two of which have not previously been used. As theory predicts, we find that when filling positions requiring more training, employers search more intensively and extensively. Employers also search more extensively when hiring workers with more education and with prior experience. These findings provide strong evidence of systematic variation in search strategies based on the characteristics of the positions and job applicants. Factors that influence employer search also affect the duration of a vacancy.