Bridging the Miles: Spatial Factors in Job Application and Selection
Speakers:
Shekhar TomarIndian School of Business
Abstract:-
Using data from a large online job portal on posted jobs and applications and accounting for unobserved heterogeneity at the job and candidate level, we find that candidates are 90% less likely to apply to jobs beyond 100 miles in India. Albeit, the observed distaste is higher toward jobs located in smaller non-metro cities. To examine the channels, we first exploit a natural experiment that introduced subsidized air linkages between cities. While such a policy change increases applications to distant metro locations by 25%, there is little effect on applications for jobs located in distant non-metros. We also find that higher availability of jobs in a city within the candidate’s target occupation substantially offsets this observed distaste towards jobs in non-metros, underlining the influential role of prospective job mobility concerns in explaining distaste for distant locations. Utilizing the shortlisting information, we finally rule out that applicants’ behavior is an equilibrium response to employer behavior. Employers in non-metro cities show no discernible distaste to shortlisting candidates from distant locations.