In developing countries, not having job websites actually makes it faster for companies to hire people.
While we assume that LinkedIn and professional job boards make hiring efficient, evidence from Pakistan shows that the total lack of these institutions forces managers to rely entirely on informal referrals. This 'informality' results in vacancy durations that are significantly shorter than those in developed countries, as managers bypass long bureaucratic screening processes in favor of personal trust networks.
Formal Sector Hiring Behavior in a Developing Country: Evidence from Structured Interviews
SSRN · 6285339
This paper empirically presents new evidence for the hiring behavior of managers with emphasis on a developing country, Pakistan. Pakistani economy characterized with a large informal sector, this study, though, is conducted for formal sector private firms, the evidence suggests footprints of informality in its formal labor market as well. The lack of formal labor market institutions leads to greater incidence of informal hiring channels such as hiring through referrals and already received CVs.