Recently, Cai Xiaoming, associate professor at Peking University HSBC Business School (PHBS), published a collaborative paper titled “Meetings and Mechanisms” in International Economic Review. The paper examines the potential impact of the improved ability of firms to select job candidates in the overall labor market.
With the advent of information technology, modern businesses have become adept at accurately selecting job seekers. For example, some companies use online career tests, which assign a value score to each applicant based on their answers. This score is calculated by correlating feedback from current employees with their job performance.
This technological innovation in human resources raises an important question: What is the impact on the labor market, especially for workers with different skills?
Cai’s research reveals that companies no longer worry about highly skilled applicants being overshadowed by those with lower skills. To avoid recruitment failures, positions targeting high-skilled workers encourage a wide range of applications. However, this reduces the chances for low-skilled workers to get a job, which in turn lowers their expectations for returning to the labor market.
The methods outlined in the published paper offer a new approach to understand the challenges brought by new techniques in the labor market, which can include various practical factors in the framework of job search and matching models.
More information:
Xiaoming Cai et al, Meetings and mechanisms, International Economic Review (2022). DOI: 10.1111/iere.12592
Provided by Peking University
Citation: Examining the impact of company choice ability on labor markets (2023, July 24) retrieved 24 July 2023 from https://phys.org/news/2023-07-impact-company-ability-labor.html
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