Searching for Jobs: Evidence from MBA Graduates

While recent work shows that characteristics of managers influence firm performance, evidence regarding the selection of managers into firms is scarce. This paper uses novel data from the labor market for MBA graduates to understand how these individuals search and compete for jobs. I find that candidates search harder if they have lower ability or worse outside options, the job sought is more valuable, or if firms are more likely to hire. Candidates self-select into positions for which they are better qualified and higher ability types choose to compete for better paying jobs, such as those in the financial industry.