Publications
Publications
- 2022
Communicating Corporate Culture in Labor Markets: Evidence from Job Postings
By: Joseph Pacelli, Tianshuo Shi and Yuan Zou
Abstract
We examine how firms craft their job postings to convey information about their culture and
whether doing so helps attract employees. We utilize state-of-the-art machine learning methods to
develop a comprehensive dictionary of key corporate values across the near universe of job
postings. Our analyses demonstrate that culture information in job postings helps firms better
attract job seekers, as it is associated with higher worker inflows, shorter job posting vacancies,
and lower subsequent worker outflows. Culture information has a more pronounced effect on
worker inflows when job seekers face information frictions in learning about culture through other
sources. Additional analyses indicate that interviews are more likely to lead to job offers for firms
highlighting culture in their job postings, indicating that culture information helps job seekers sort
into culturally fit companies. Overall, our findings suggest that job postings are an important
mechanism for communicating cultural values to prospective employees.
Keywords
Corporate Culture Significance; Labor Markets; Disclosure; Organizational Culture; Recruitment; Talent and Talent Management
Citation
Pacelli, Joseph, Tianshuo Shi, and Yuan Zou. "Communicating Corporate Culture in Labor Markets: Evidence from Job Postings." Working Paper, October 2022.