Searching for Jobs: Evidence from MBA Graduates

This paper proposes and tests empirically a model of optimal job search using novel data on job seeking strategies of participants in the labor market for MBA graduates. Theoretically and empirically I find that the breadth of search that workers conduct depends on their ability, outside option, and fit with available jobs, as well as on the exogenous job application cost and the ex-ante probability of applications resulting in offers. These results illustrate the formation of the supply of human capital available to hiring companies, which drives the efficiency of matching between workers and firms and ultimately determines productivity.