EMPLOYER SEARCH AND WORKER-FIRM MATCH QUALITY

Labor economists are devoting increasing attention to employer search. The existing literature falls into two categories: research on inform ation networks and research on search effort. The empirical research o n search effort considers the determinants of effort but does not atte mpt to measure its effectiveness. Other research considers the impact of information networks on labor market outcomes, but ignores the role of search effort. Using data from the Employment Opportunities Pilot Project (EOPP), this paper attempts to synthesize the Empirical resear ch on employer search effort by considering information networks and s earch effort together within a job-matching framework. Specifically, t he effects of employer search on employee turnover are examined using both hazard models and Probit analysis. The effect of employer search on wage growth within the job is also considered. I find, consistent w ith prior research, that when firms search through informal networks, the resulting worker-firm matches am superior to those resulting from search through formal networks. I also find that the impact of employe r search effort depends upon the type of information network used in t he search process.