Sequential or Non-sequential Recruitment?

This paper examines the recruitment process of firms. We test whether firms search sequentially or non-sequentially using data compiled from filled vacancies. According to theory, in case of sequential hiring, the number of applicants is proportional to the number of employees hired, whereas in case of non-sequential hiring, the number of applicants increases by less. We distinguish between different types of recruitment methods. We find that the sequential hiring is rejected for a number of methods (including advertisements) covering almost half of the vacancies, and the large majority of the job applications by job seekers. Informal recruitment methods tend to imply sequential search.