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Recruitment Policies and Labor Markets

It is well known that labor markets affect recruitment policies. Can recruitment policies in turn affect the labor market?

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1. It is well known that labor markets affect recruitment policies. Can recruitment policies in turn affect the labor market?

This is a complex relationship. As stricter labor regulations result in stricter recruitment standards, this is reflected in the recruitment policies. This also impacts the labor market, as stricter recruitment standards result in hiring different types of workers. For example, stricter recruitment policies often result in recruiting more experienced, higher educated and qualified workers, and ARE MORE restrictive to the less educated and less-qualified person. This is seen the following example study. However, the labor union also played into this equation e.g. increases in levels of trade union membership were associated with increases in recruits' previous experience, other things being equal, and this relationship may be "because increases in union membership decrease wage flexibility and also signal more labour regulation - both of which reduce the hiring of less qualified workers" (http://www.jrf.org.uk/knowledge/findings/socialpolicy/529.asp).

EXAMPLE 1:

While labour regulation, such as dismissals protection, protects workers with jobs, it may lead to stricter hiring ...

Solution Summary

It is well known that labor markets affect recruitment policies. By example, this solution discusses if recruitment policies can in turn affect the labor market.

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