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Firms' search intensity is important for labor market matching as well as for aggregate
labor market dynamics. Yet there is only limited research on the recruitment behavior
at the microeconomic level. Using the Job Vacancy Survey of Germany's Institute
for Employment Research (IAB), linked with the administrative employment histories,
we explore the relationships between hiring, job-lling rates and recruitment policy.
We nd that faster hiring goes along with higher recruiting intensity, lower hiring
standards and higher wages. We develop a quantitative competitive search model
with heterogeneous rms and match-specic productivity in which rms decide about
recruiting intensity, hiring standards and wage oers. A calibrated version of the
model allows to assess the relative importance of these recruitment dimensions for
the variation of job-lling rates across rms, as well as for the variation of matching
eciency across local labor markets.
