Direct Job Applications, Social Networks and Public Employment Agencies: Information and Matches in the French Labour Market
Drawing on data from the French Labour Surveys (2005-2012), this article deals with the matching processes achieved by the three main recruitment channels in the French labour market: direct job applications, networks and public employment agencies. The job finding channels are analyzed, controlling for the job search channels used. Drawing on the economy of conventions theory, the main hypothesis is that the three channels lead to different matches because they do not convey the same kind of information about applicants: the ‘format’ of the information may be written, spoken or standardized. When a job-seeker directly applies to a firm, there is no intermediary between her and the employer. Uncertainty may be strong but seems to be reduced when the applicant has worked in the firm in the past or when she is on-the-job rather than unemployed. People who publish a job application in order to advertise about their qualities are also advantaged by such a channel. Social networks provide spoken information about the candidates, within a limited area or community. People who did not have French nationality at birth and those who live with (at least) one employed person are more likely to have found their job through networks rather than through another channel. Public agencies provide employment to people without previous work experience in companies and are poorly connected to the labour market (unemployed and inactive people). Compared to the other ones, employees who have found their job via a public employment agency have more often replied to a job advert. To a certain extent, this result highlights the standardization undertaken by the public institution, which is unfavourable to people who did not have French nationality at birth. When the regional rate of unemployment increases, the probability of being hired through direct job application increases, while such a probability decreases with the other two channels.