Choosing recruitment channels to fill high job positions

This paper analyzes the recruitment strategies used by firms to fill high job po-sitions. We consider different kinds of hiring channels: formal channels, employee referrals, promotion, and ‘top-notch ’ universities. The model emphasizes three op-timal recruitment policies according to firm and channel characteristics. When several firms are considered in a stationary equilibrium setting, the combination of channels generates multiple rational expectation equilibria. If they are hetero-geneous in terms of size and technologies, conflicts of interest may emerge among firms, reflecting the recruitment difficulties of small and medium sized enterprises. We finally show how second best policies can be implemented