TIMING OF ENTRY-LEVEL LABOUR MARKET TRANSACTIONS IN SINGAPORE

Abstract

Acknowledging the recent observation that more fresh graduates are given job appointments before graduation, this study investigates the possible motives for market participants (firms and students) to bring forward the timing of transactions. On a more general level, this study investigates the difficulties in coordinating among different market participants in establishing a uniform time for transactions to take place and for the market to function properly. In this paper, several different entry-level labour markets are investigated. It is discovered that in these markets there are common and conflicting interests among the market participants regarding the timing of transactions in each market. These common and conflicting interests give rise to strategic behaviours among market participants and to a certain extent, shape the way the market is organised at the present day. Based on these findings, some explanations of the observed phenomena are provided together with an evaluation of the job search strategies practised by graduates and firms. A mathematical modeling in the like of game theory is also used to explain and predict the behaviour of these markets and the observed phenomena. Directions for future research are also highlighted