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Sheehan, Patrick (2021): Unemployment Experts: Governing the Job Search in the New Economy. In: Work and occupations, Jg. 48, H. 4, S. 470-497. DOI:10.1177/07308884211003652

Abstract

"In recent years, sociologists have examined unemployment and job searching as important arenas in which workers are socialized to accept the terms of an increasingly precarious economy. While noting the importance of expert knowledge in manufacturing the consent of workers, research has largely overlooked the experts themselves that produce such knowledge. Who are these experts and what kinds of advice do they give? Drawing on interviews and ethnographic fieldwork conducted at three job search clubs, the author develops a three-fold typology of “unemployment experts”: Job Coaches present a technical diagnosis that centers mastery of job-hunting techniques; Self-help Gurus present a moral diagnosis focused on the job seeker’s attitude; and Skill-certifiers present a human capital diagnosis revolving around the job seeker’s productive capacities. By offering alternative diagnoses and remedies for unemployment, these experts give job seekers a sense of choice in interpreting their situation and acting in the labor market. However, the multiple discourses ultimately help to secure consent to precarious labor markets by drawing attention to a range of individual deficiencies within workers while obfuscating structural and relational explanations of unemployment. The author also finds that many unemployment experts themselves faced dislocations from professional careers and are making creative claims to expertise. By focusing on experts and their varied messages, this paper reveals how the victims of precarious work inadvertently help to legitimate the new employment regime." (Author's abstract, IAB-Doku) ((en))

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Song, Kyungho, Hyun Kim, Jisoo Cha & Taedong Lee (2021): Matching and Mismatching of Green Jobs: A Big Data Analysis of Job Recruiting and Searching. In: Sustainability, Jg. 13, H. 7. DOI:10.3390/su13074074

Abstract

"Creating green jobs tackles two crises: the economic downturn and environmental degradation. Responding to the economic downturn, some governments have declared a “green new deal” to remedy unemployment and the economic crisis. Job creation has been suggested as a driving force for sustainable economic development and climate change action. However, the question of how many and what types of green jobs are required has not been systematically examined. Are green job openings and searches matching each other in terms of timing, sectors, regions, and salary? This study aims to explore the degree of matching between green job supply and demand using a big data analysis (BDA) of online job market recruiting services in South Korea from 2009 to 2020. The BDA of the Ecojob website reveals that green jobs are concentrated in Seoul and Gyeounggi-do metropolitan areas. The number of water- and air-quality-related jobs is high within these sectors. Job searches in the water quality sector outnumbered job openings. The findings imply that green job creation policy should reflect timing, regional, and sectoral demand and supply data. Creating and matching green jobs is expected to reduce environmental harm, enhance environmental quality, and reduce unemployment." (Author's abstract, IAB-Doku) ((en))

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Watermann, Henriette, Ulrike Fasbender & Ute-Christine Klehe (2021): Predicting the self-regulated job search of mature-aged job seekers: The use of elective selection, loss-based selection, optimization, and compensation strategies. In: Journal of vocational behavior, Jg. 128. DOI:10.1016/j.jvb.2021.103591

Abstract

"Job search is a demanding and often demotivating process, challenging job-seekers' self-regulation. Particularly, mature-aged job seekers face lower reemployment chances – and may benefit from strategies known from the lifespan literature. The current study examined whether and when the use of aging strategies (elective selection, loss-based selection, optimization, and compensation; SOC strategies) can support mature-aged job seekers in their self-regulated job search process (goal establishment and goal pursuit). We collected data from 659 mature-aged job seekers in three countries (Germany, United Kingdom, and United States) at four different times over two months. Results of multi-level modeling showed no support for gain-oriented strategies, namely elective selection (prioritizing one instead of multiple goals) and optimization (investing every effort to reach one's goal). In contrast, loss-oriented strategies, namely loss-based selection (prioritizing or selecting a new goal after a setback) and compensation (using new or previously unused means in the face of obstacles), supported mature-aged job seekers' goal establishment and goal pursuit. Moreover, with increasing age, mature-aged job seekers reported lower reemployment efficacy (the confidence to find a new job), which moderated the relation between compensation with goal pursuit. Compensation was particularly helpful for mature-aged job seekers' goal pursuit in weeks in which they reported lower (vs. higher) reemployment efficacy. These findings highlight the importance of loss-oriented aging strategies as beneficial coping strategies. With regard to practice, the present study speaks to the benefits of SOC strategies and points to the development of interventions targeted toward mature-aged job seekers." (Author's abstract, IAB-Doku, © 2021 Elsevier) ((en))

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Wozniak, Marcin (2021): Spatial matching on the urban labor market: estimates with unique micro data. In: Journal for labour market research, Jg. 55. DOI:10.1186/s12651-021-00293-1

Abstract

"In the paper, we investigate spatial relationship on the labor market of Poznań agglomeration (Poland) with unique data on job vacancies. We have developed spatial panel models to assess the search and matching process with a particular focus on spatial spillovers. In general, spatial models may provide different findings than regular panel models regarding returns to scale in matching technology. Moreover, we have identified global spillover effects as well as other factors that impact the job-worker matching. We underline the role of data on job vacancies: the data retrieved from commercial job portals produced much more reliable estimates than underestimated registered data." (Autorenreferat, © 2021 Springer Nature) ((en))

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Ziegler, Lennart (2021): Skill Demand and Wages. Evidence from Linked Vacancy Data. (IZA discussion paper 14511), Bonn, 37 S.

Abstract

"This study provides new evidence on skill requirements in the labor market and shows to what extent skill demand is associated with wages and vacancy duration. Using more than 1.5 million job postings administered by the Austrian public employment service, I identify the most common skill requirements mentioned in job descriptions. Because employers in Austria are legally required to state the minimum remuneration for advertised positions, it is possible to relate the skill content of jobs to wage postings. Moreover, I estimate skill associations with starting wages for a subset of vacancies which can be matched to administrative data on employment spells of eventual hires. Accounting for education, work experience, and firm and occupation fixed-effects, there exists a robust association between the number of skill requirements and wages. In particular, jobs with many skill requirements pay substantially higher wages. While I estimate large effects for managerial and analytical skills, associations with most soft skills are small. Employers also need longer to fill vacancies with many skill requirements. Robustness tests show that measurement error is unlikely to explain these results and that the estimates can be replicated using vacancy postings from another job board." (Author's abstract, IAB-Doku) ((en))

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Bhuller, Manudeep, Andreas R. Kostøl & Trond C. Vigtel (2020): How broadband internet affects labor market matching. (IZA discussion paper 12895), Bonn, 63 S.

Abstract

"How the internet affects job matching is not well understood due to a lack of data on job vacancies and quasi-experimental variation in internet use. This paper helps fill this gap using plausibly exogenous roll-out of broadband infrastructure in Norway, and comprehensive data on recruiters, vacancies and job seekers. We document that broadband expansions increased online vacancy-postings and lowered the average duration of a vacancy and the share of establishments with unfilled vacancies. These changes led to higher job-finding rates and starting wages and more stable employment relationships after an unemployment-spell. Consequently, our calculations suggest that the steady-state unemployment rate fell by as much as one-fifth." (Author's abstract, IAB-Doku) ((en))

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Braun, Christine, Bryan Engelhardt, Benjamin Griffy & Peter Rupert (2020): Testing the independence of job arrival rates and wage offers. In: Labour Economics, Jg. 63. DOI:10.1016/j.labeco.2020.101804

Abstract

"Is the arrival rate of a job independent of the wage that it pays? We answer this question by testing whether unemployment insurance alters the job finding rate differentially across the wage distribution. To do this, we use a Mixed Proportional Hazard Competing Risk Model in which we classify quantiles of the wage distribution as competing risks faced by searching unemployed workers. Allowing for flexible unobserved heterogeneity across spells, we find that unemployment insurance increases the likelihood that a searcher matches to higher paying jobs relative to low or medium paying jobs, rejecting the notion that wage offers and job arrival rates are independent. We show that dependence between wages and job offer arrival rates explains 9% of the increase in the duration of unemployment associated with unemployment insurance." (Author's abstract, IAB-Doku, © 2020 Elsevier) ((en))

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Carranza, Eliana, Robert Garlick, Kate Orkin & Neil Rankin (2020): Job Search and Hiring with Two-sided Limited Information about Workseekers' Skills. (Upjohn Institute working paper 328), Kalamazoo, Mich., 70 S. DOI:10.17848/wp20-328

Abstract

"We present field experimental evidence that limited information about workseekers’ skills distorts both firm and workseeker behavior. Assessing workseekers’ skills, giving workseekers their assessment results, and helping them to credibly share the results with firms increases workseekers’ employment and earnings. It also aligns their beliefs and search strategies more closely with their skills. Giving assessment results only to workseekers has similar effects on beliefs and search, but smaller effects on employment and earnings. Giving assessment results only to firms increases callbacks. These patterns are consistent with two-sided information frictions, a new finding that can inform design of information-provision mechanisms." (Author's abstract, IAB-Doku) ((en))

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Faberman, R. Jason (2020): Recruiting intensity. Recruiting intensity is critical for understanding fluctuations in the labor market. (IZA world of labor 21), Bonn, 10 S. DOI:10.15185/izawol.21.v2

Abstract

"Politikansätze zur Schaffung von Arbeitsplätzen, die sich nur darauf konzentrieren, wie oft Arbeitgeber einstellen, und dabei die Anpassungsprozesse der Unternehmen bei der Personalgewinnung ignorieren, drohen ihre Ziele zu verfehlen. Die Rekrutierungsintensität in den USA während und nach der Großen Rezession unterstreicht dies: Nach der Großen Rezession blieb die Rekrutierungsintensität trotz des Anstiegs der Zahloffener Stellen auf ein historisch hohes Niveau anhaltend niedrig. Dass sich Lohnwachstum und Einstellungsrate langsamer erholten, ist zum Teil auf diese geringe Rekrutierungsintensität zurückzuführen." (Autorenreferat, IAB-Doku)

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Gertler, Mark, Christopher Huckfeldt & Antonella Trigari (2020): Unemployment Fluctuations, Match Quality, and the Wage Cyclicality of New Hires. In: The Review of Economic Studies, Jg. 87, H. 4, S. 1876-1914. DOI:10.1093/restud/rdaa004

Abstract

"We revisit the issue of the high cyclicality of wages of new hires. We show that after controlling for composition effects likely involving procyclical upgrading of job match quality, the wages of new hires are no more cyclical than those of existing workers. The key implication is that the sluggish behaviour of wages for existing workers is a better guide to the cyclicality of the marginal cost of labour than is the high measured cyclicality of new hires wages unadjusted for composition effects. Key to our identification is distinguishing between new hires from unemployment versus those who are job changers. We argue that to a reasonable approximation, the wages of the former provide a composition-free estimate of the wage flexibility, while the same is not true for the latter. We then develop a quantitative general equilibrium model with sticky wages via staggered contracting, on-the-job search, and heterogeneous match quality, and show that it can account for both the panel data evidence and aggregate evidence on labour market volatility." (Author's abstract, IAB-Doku) ((en))

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Granberg, Mark, Niklas Ottosson & Ali Ahmed (2020): Do ethnicity and sex of employers affect applicants’ job interest? An experimental exploration. In: Journal for labour market research, Jg. 54, S. 1-15. DOI:10.1186/s12651-020-00281-x

Abstract

"Starting a business is one way out of unemployment for many people. Having a small pool of job applicants may, however, affect the quality of manpower available to employers. This paper reports the results of an experimental study that examined whether job-seekers discriminate against prospective employers based on those employers’ ethnicity and sex. We conducted an experiment with 889 university students, where we presented 10 hypothetical job vacancies in the restaurant sector to the participants. We then asked participants to state their willingness to apply to each job. The ethnicity and sex of the employers were conveyed through employers’ names by using typical male and female Arabic- and Swedish-sounding names. Overall, our results provided no evidence of ethnic or sex discrimination by job-seekers against employers." (Author's abstract, IAB-Doku) ((en))

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Hoffman, Mitchell & Stephen V. Burks (2020): Worker overconfidence: Field evidence and implications for employee turnover and firm profits. In: Quantitative Economics, Jg. 11, H. 1, S. 315-348. DOI:10.3982/QE834

Abstract

"Combining weekly productivity data with weekly productivity beliefs for a large sample of truckers over 2 years, we show that workers tend to systematically and persistently overpredict their productivity. If workers are overconfident about their own productivity at the current firm relative to their outside option, they should be less likely to quit. Empirically, all else equal, having higher productivity beliefs is associated with an employee being less likely to quit. To study the implications of overconfidence for worker welfare and firm profits, we estimate a structural learning model with biased beliefs that accounts for many key features of the data. While worker overconfidence moderately decreases worker welfare, it also substantially increases firm profits." (Author's abstract, IAB-Doku) ((en))

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Kiarsi, Mehrab (2020): The Fundamental Surplus or the Fundamentality of Vacancy Posting Costs? In: Economics Bulletin, Jg. 40, H. 2, S. 1011-1016.

Abstract

"In a recent influential paper, Ljungqvist and Sargent (2017) suggest that beneath the large responses of unemployment to movements in productivity in the various proposed reconfigurations of the standard Mortensen and Pissarides model is simply the small size of the fundamental surplus fraction. I show that the fundamental surplus fraction is small if and only if the per-vacancy posting cost is small." (Author's abstract, IAB-Doku) ((en))

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Martellini, Paolo & Guido Menzio (2020): Declining Search Frictions, Unemployment and Growth. In: Journal of Political Economy, Jg. 128, H. 12, S. 4387-4437. DOI:10.1086/710975

Abstract

"For a search-theoretic model of the labor market, we seek conditions for the existence of a Balanced Growth Path (BGP), an equilibrium in which unemployment, vacancy, and worker's transition rates remain constant in the face of improvements in the production and search technologies. A BGP exists iff firm-worker matches are inspection goods, and the idiosyncratic component of productivity of a match is drawn from a Pareto distribution. Declining search frictions contribute to the growth of the economy with an intensity that depends on the tail coeffcient of the Pareto distribution. A corollary of the theory is that market size does not affect unemployment, vacancy and worker's transition rates even with non-constant returns to scale in search. We develop a strategy to measure the rate of decline of search frictions, the returns to scale in search, and their contribution to growth." (Author's abstract, IAB-Doku) ((en))

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Martin, Ludivine (2020): How to retain motivated employees in their jobs? In: Economic and Industrial Democracy, Jg. 41, H. 4, S. 910-953. DOI:10.1177/0143831X17741528

Abstract

"This article examines the contribution of human resource management (HRM) and information and communication technologies (ICTs) in the retention of motivated employees. The author uses a representative random sample of private sector employees from Western Europe. The data set contains information on employees' motivations, on-the-job search and workplace environment. The results show that HRM and ICT bundles are positively related to motivations. Being motivated for intrinsic and personal growth reasons decreases the likelihood to search while being motivated for rewards or compulsion reasons increases it. HRM strengthens the likelihood to search in the same way, while ICTs tend to increase the likelihood to search of all employees." (Author's abstract, IAB-Doku) ((en))

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Martin, Christopher & Bingsong Wang (2020): Search, shirking and labor market volatility. In: Journal of macroeconomics, Jg. 66. DOI:10.1016/j.jmacro.2020.103243

Abstract

"This paper proposes a modified version of the standard search and matching model of the labor market that includes a shirking mechanism. We show that our model delivers a close match to the simulated volatilities, correlations and autocorrelations of unemployment, vacancies, labor market tightness and the job finding rate with values observed in US data. In doing so, it outperforms prominent alternative models. Our model also has novel policy implications for the impact of income taxes, subsidies on hiring and employment taxes on unemployment and its volatility." (Author's abstract, IAB-Doku, © 2020 Elsevier) ((en))

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Modestino, Alicia Sasser, Daniel Shoag & Joshua Ballance (2020): Upskilling: Do Employers Demand Greater Skill When Workers Are Plentiful? In: The Review of Economics and Statistics, Jg. 102, H. 4, S. 793-805. DOI:10.1162/rest_a_00835

Abstract

"Using a proprietary database of online job postings, we find that education and experience requirements rose during the Great Recession. These increases were larger in states and occupations that experienced greater increases in the supply of available workers. This finding is robust to controlling for local demand conditions and firm x job-title fixed effects and using a natural experiment arising from troop withdrawals as an exogenous shock to labor supply. Our results imply that the increase in unemployed workers during the Great Recession can account for 18% to 25% of the increase in skill requirements between 2007 and 2010." (Author's abstract, IAB-Doku, © MIT Press Journals) ((en))

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Taber, Christopher & Rune Vejlin (2020): Estimation of a Roy/search/compensating differential model of the labor market. In: Econometrica, Jg. 88, H. 3, S. 1031-1069. DOI:10.3982/ECTA14441

Abstract

"In this paper, we develop a model that captures key components of the Roy model, a search model, compensating differentials, and human capital accumulation on-the-job. We establish which components of the model can be non-parametrically identified and which ones cannot. We estimate the model and use it to assess the relative contribution of the different factors for overall wage inequality. We find that variation in premarket skills (the key feature of the Roy model) is the most important component to account for the majority of wage variation. We also demonstrate that there is substantial interaction between the other components, most notably, that the importance of the job match obtained by search frictions varies from around 4% to around 29%, depending on how we account for other components. Inequality due to preferences for non-pecuniary aspects of the job (which leads to compensating differentials) and search are both very important for explaining other features of the data. Search is important for turnover, but so are preferences for non-pecuniary aspects of jobs as one-third of all choices between two jobs would have resulted in a different outcome if the worker only cared about wages." (Author's abstract, IAB-Doku) ((en))

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Aepli, Manuel (2019): Technological change and occupation mobility: A task-based approach to horizontal mismatch. (GLO discussion paper / Global Labor Organization 361), Maastricht, 48 S.

Abstract

"Technological change and its impacts on labour markets are a much-discussed topic in economics. Economists generally assume that new technology penetrating the labour market shifts firms' task demand. Given individuals' acquired and supplied skills, these task demand shifts potentially foster horizontal skill mismatches, e.g. individuals not working in their learned occupations. In this paper, I first analyse the relation between task shifting technological change and individuals' horizontal mismatch incidence. Second, I estimate individuals' mismatch wage penalties triggered by this relation. The present paper proposes an instrumental variable (IV) approach to map this mechanism and to obtain causal estimates on mismatch wage penalties. Applying this empirical strategy yields a wage penalty of roughly 12% for horizontally mismatched individuals." (Author's abstract, IAB-Doku) ((en))

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Auer, Manfred, Gabriela Edlinger, Tanja Petry & Judith Pfliegensdörfer (2019): The role of affective states in potential applicants' evaluations of employer attractiveness. In: German journal of human resource management, Jg. 33, H. 4, S. 363-386. DOI:10.1177/2397002219854959

Abstract

"What role do emotions play as a job seeker eyes up a potential employer? Our contribution to research into employer attractiveness explores the role that affective states play in potential applicants' subjective perceptions of companies' employer attractiveness in the early phase of job seeking. We adopt a concurrent verbalization approach to inquire into qualified potential applicants' processes of interpreting employer branding material. Based on these data, we provide insights into the neglected role of emotions in research on potential applicants' assessments of the appeal of an organization. The findings from a multistep qualitative data analysis produce the following four propositions: (1) strong emotions influence the outcome of the opinion-making process; (2) negative emotions play a crucial role in potential applicants' evaluations of employer attractiveness; (3) some contents of employer information elicit negative emotions, whereas their complementary counterparts do not elicit positive affective reactions; and (4) expectations towards an employer and comparisons among employers influence potential applicants' sentiments about individual employers." (Author's abstract, IAB-Doku) ((en))

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Banfi, Stefano & Benjamín Villena-Roldán (2019): Do high-wage jobs attract more applicants? Directed search evidence from the online labor market. In: Journal of labor economics, Jg. 37, H. 3, S. 715-746. DOI:10.1086/702627

Abstract

"Labor markets become more efficient in theory if job seekers direct their search. Using online job board data, we show that high-wage ads attract more applicants as in directed search models. Due to distinctive data features, we also estimate significant but milder directed search for hidden (or implicit) wages, suggesting that ad texts and requirements tacitly convey wage information. Since explicit-wage ads often target unskilled workers, other estimates in the literature ignoring hidden-wage ads may suffer from selection bias. Moreover, job ad requirements are aligned with their applicants' traits, as predicted in directed search models with heterogeneity." (Author's abstract, IAB-Doku) ((en))

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Barr, Tavis, Raicho Bojilov & Lalith Munasinghe (2019): Referrals and search efficiency: Who learns what and when? In: Journal of labor economics, Jg. 37, H. 4, S. 1267-1300. DOI:10.1086/703163

Abstract

"Referrals can improve screening and self-selection of applicants during the hiring process. We model and estimate how referral information affects the selection of employees through job offers, acceptances, and turnover. Using data from a call center company, we show that referrals help employers attract applicants of superior performance. Yet performance differences between referred and nonreferred workers diminish with tenure through selective turnover. Our estimates reveal that referrals allow employers to screen on hard-to-observe but performance-relevant attributes for employees of high performance and high propensity to stay. Thus, referred applicants complete much of the sorting during the hiring process." (Author's abstract, IAB-Doku) ((en))

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Berg, Gerard J. van den & Bas van der Klaauw (2019): Structural empirical evaluation of job search monitoring. In: International Economic Review, Jg. 60, H. 2, S. 879-903. DOI:10.1111/iere.12376

Abstract

"To evaluate search effort monitoring of unemployed workers, it is important to take account of post-unemployment wages and job-to-job mobility. We structurally estimate a model with search channels, using an RCT in which monitoring is randomized. The data include registers and survey data on search behavior. We find that the opportunity to move to better-paid jobs in employment reduces the extent to which monitoring induces substitution towards formal search channels in unemployment. Job mobility compensates for adverse long-run effects of monitoring on wages. We examine counterfactual policies against moral hazard, like reemployment bonuses and changes of the benefits path." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Brunello, Giorgio & Patricia Wruuck (2019): Skill shortages and skill mismatch in Europe. A review of the literature. (IZA discussion paper 12346), Bonn, 34 S.

Abstract

"Labour markets are currently in a phase of cyclical recovery and undergoing structural transformation due to globalisation, demographic trends, advancing digital technologies and automation and changes in labour market institutions. Against this background, businesses increasingly report that the limited availability of skills poses an impediment to corporate investment. Genuine skill constraints can negatively affect labour productivity and hamper the ability to innovate and adopt technological developments. For individual Europeans, not having 'the right skills' limits employability prospects and access to quality jobs. For Europe at large, persistent skill gaps and mismatches come at economic and social costs. This paper reviews the recent economic literature on skill mismatch and skill shortages with a focus on Europe a focus on Europe." (Author's abstract, IAB-Doku) ((en))

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Eckstein, Zvi, Ofer Setty & David Weiss (2019): Financial risk and unemployment. In: International Economic Review, Jg. 60, H. 2, S. 475-516. DOI:10.1111/iere.12360

Abstract

"There is a strong correlation between corporate interest rates, their spreads relative to Treasuries, and the unemployment rate. We model how corporate interest rates affect equilibrium unemployment and vacancies, in a Diamond - Mortesen - Pissarides search and matching model. Our simple model permits the exploration of U.S. business cycle statistics through the lens of financial shocks. We calibrate the model using U.S. data without targeting business cycle statistics. Volatility in the corporate interest rate can explain a quantitatively meaningful portion of the labor market. Data on corporate firms support the hypothesis that firms facing more volatile financial conditions have more volatile employment." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Ellington, Michael, Chris Martin & Bingsong Wang (2019): Search frictions and evolving labour market dynamics. (Warwick economic research papers 1195), Coventry, 22 S.

Abstract

"This paper puts search frictions models under novel empirical scrutiny and tests their ability to match empirical observations. To capture changing dynamics we fit an extended Bayesian time-varying parameter VAR to US labour market data from 1962-2016. We find strong evidence against key predictions of the search frictions model, namely a large surge in vacancy creation in response to productivity shocks and a negative relationship between the volatilities of unemployment and wages. Our results question the amplification mechanism embedded in search frictions models and cast doubt on wage rigidity as a source of unemployment volatility." (Author's abstract, IAB-Doku) ((en))

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Faberman, R. Jason & Marianna Kudlyak (2019): The intensity of job search and search duration. In: American Economic Journal. Macroeconomics, Jg. 11, H. 3, S. 327-357. DOI:10.1257/mac.20170315

Abstract

"We use online job application data to study the relationship between search intensity and search duration. The data allow us to control for job seeker composition and the evolution of available job openings over the duration of search. We find that, within an individual search spell, search intensity declines continuously. We also find that longer-duration job seekers search more intensely throughout their search. They tend to be older, male, nonemployed, and live in areas with weaker labor markets. Our findings contradict standard assumptions of labor search models. We discuss how to reconcile the theory with our evidence." (Author's abstract, IAB-Doku) ((en))

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Gottfries, Nils & Karolina Stadin (2019): The Beveridge curve and labour market flows - a reinterpretation. (CESifo working paper 7689), München, 52 S.

Abstract

"According to search-matching theory, the Beveridge curve slopes downward because vacancies are filled more quickly when unemployment is high. Using monthly panel data for local labour markets in Sweden we find no (or only weak) evidence that high unemployment makes it easier to fill vacancies. Instead, there are few vacancies when unemployment is high because there is a low inflow of new vacancies. We construct a simple model with on-the-job search and show that it is broadly consistent with the cyclical behaviour of stocks and flows in the labour market also without search frictions. In periods of high unemployment, fewer employed job seekers find new jobs and this leads to a smaller inflow of new vacancies." (Author's abstract, IAB-Doku) ((en))

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Haeringer, Guillaume & Vincent Iehlé (2019): Two-sided matching with (almost) one-sided preferences. In: American Economic Journal. Microeconomics, Jg. 11, H. 3, S. 155-190. DOI:10.1257/mic.20170115

Abstract

"In a two-sided matching context we show how we can predict stable matchings by considering only one side's preferences and the mutually acceptable pairs of agents. Our methodology consists of identifying impossible matches, i.e., pairs of agents that can never be matched together in a stable matching of any problem consistent with the partial data. We analyze data from the French academic job market for mathematicians and show that the match of about 45 percent of positions (and about 60 percent of candidates) does not depend on the preferences of the hired candidates, unobserved and submitted at the final stage of the market." (Author's abstract, IAB-Doku) ((en))

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Hassler, Benedikt, Lea Widmer, Thomas Geisen, Nathalie Amstutz, Nico Scheidegger & Nadine Wenger (2019): Arbeitsplätze ohne formale Qualifikationsanforderungen in der Schweiz. Rekrutierungsstrategien von Unternehmen und deren sozialpolitische Bedeutung. In: Zeitschrift für Sozialreform, Jg. 65, H. 2, S. 147-174. DOI:10.1515/zsr-2019-0006

Abstract

"Aktuelle politische und wissenschaftliche Debatten zum Schweizer Arbeitsmarkt fokussieren insbesondere auf den sogenannten Fachkräftemangel. Aufgrund dieser Fokussierung fehlt bislang weitgehend Wissen dazu, wie für Arbeitsplätze ohne formale Qualifikationsanforderungen in der Schweiz Arbeitskräfte rekrutiert werden. Basierend auf einer qualitativen Studie geht der vorliegende Artikel dieser Frage nach. Die Resultate des Artikels zeigen, dass Sprachfähigkeiten, körperliche Konstitution, Leistungsbereitschaft und Identifikation mit dem Unternehmen eine bedeutende Rolle im Rahmen der Rekrutierung spielen. Diese Anforderungskriterien lassen sich allerdings nur schwer anhand von Bewerbungsunterlagen oder in Vorstellungsgesprächen feststellen. Vor diesem Hintergrund gewinnen messbare Selektionskriterien wie Alter, Geschlecht, Herkunft und Berufsabschlüsse an Relevanz. Außerdem setzen Betriebe im Rahmen der Rekrutierung auf Probearbeitstage und andere 'Tests' oder rekrutieren vornehmlich über den (erweiterten) internen Arbeitsmarkt. Dies sind zentrale Erkenntnisse für die Unterstützung von erwerbsarbeitslosen Menschen im Rahmen der sozialstaatlichen Arbeitsintegration." (Autorenreferat, © De Gruyter)

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Herz, Benedikt (2019): Specific human capital and wait unemployment. In: Journal of labor economics, Jg. 37, H. 2, S. 467-508. DOI:10.1086/700190

Abstract

"A displaced worker might rationally prefer to wait through a long spell of unemployment instead of seeking employment at a lower wage in a job he is not trained for. I evaluate this trade-off using micro-data on displaced workers. To achieve identification, I exploit that the more a worker invested in occupation-specific human capital, the more costly it is for him to switch occupations and the higher is therefore his incentive to wait. I find that between 9% and 17% of total unemployment in the United States can be attributed to wait unemployment." (Author's abstract, IAB-Doku) ((en))

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L'Horty, Yannick & Florent Sari (2019): The role of spatial and skill mismatches. Explaining long-term unemployment in Paris. In: Regional Studies. Journal of the Regional Studies Association, Jg. 53, H. 2, S. 283-296. DOI:10.1080/00343404.2018.1462480

Abstract

"In the Paris region, one can observe simultaneously the coexistence of a large and dynamic job pool with long-lasting periods of unemployment. This paradox reveals the importance of skill and spatial mismatch mechanisms, which are often used to explain disparities in local labour market outcomes. This paper uses several spatial models to measure the effects of these two mechanisms on unemployment durations in the Paris region. The results show that both problems affect municipalities close to the centre of Paris, while unemployment situations in municipalities on the fringes of the region are mainly affected by a lack of local employment dynamism." (Author's abstract, IAB-Doku) ((en))

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Lalé, Etienne (2019): Search and multiple jobholding. (IZA discussion paper 12294), Bonn, 52 S.

Abstract

"A search-theoretic model of the labor market with idiosyncratic fluctuations in hours worked, search both off- and on-the-job, and multiple jobholding is developed. Taking on a second job entails a commitment to hold onto the primary employer, enabling the worker to use the primary job as her outside option to bargain with the secondary employer. The model performs well at explaining multiple jobholding inflows and outflows, and it is informative for understanding the secular decline in multiple jobholding. While some worry that this decline heralds a less-flexible labor market, the model reveals that it has contributed to reducing search frictions." (Author's abstract, IAB-Doku) ((en))

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Limnios, Christopher (2019): Housing market and labor market search. In: The B.E. Journal of Macroeconomics, Jg. 19, H. 1, S. 1-23. DOI:10.1515/bejm-2018-0049

Abstract

"Current models fail to concurrently account for several important empirical regularities in the housing and labor markets. I augment the Diamond-Mortensen-Pissarides (DMP) search and matching model of the labor market with a housing market characterized by search and matching frictions, integrating both markets in a coherent macroeconomic model. The model provides a framework to explain how shocks and frictions which originate in the labor market spill over into the housing market and vise versa. The model accounts for procyclical, serially correlated real estate values, rental rates and expected real estate appreciation. Further, it accounts for increases in wages, housing costs and willingness to commute as a result of increases in geographic amenities. The model is also consistent with the empirical relationship between vacancy rates in the housing market and separation rates in the labor market. Simulations demonstrate that certain land-use policies can mitigate permanent shocks to labor productivity and the level of geographic amenities." (Author's abstract, © De Gruyter) ((en))

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Mamertino, Mariano & Tara M. Sinclair (2019): Migration and online job search: A gravity model approach. In: Economics Letters, Jg. 181, H. August, S. 51-53. DOI:10.1016/j.econlet.2019.05.005

Abstract

"In this study we introduce a new potential data source on migration intentions in the form of online job seekers actively searching for a job in a country other than their current location. We characterize job seeker interest across national borders by measuring user behavior on a major job search website. We show the job search data are strongly positively related to available OECD migration data and also find that in a gravity model both the determinants and the relative importance of the determinants for job search are similar to those in the literature for realized migration." (Author's abstract, © 2019 Elsevier) ((en))

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Morkuté, Gintaré (2019): Location-specific knowledge in spatial job search and its outcomes. An empirical investigation. In: Papers in regional science, Jg. 98, H. 3, S. 1373-1395. DOI:10.1111/pirs.12418

Abstract

"This paper investigates how working location influences jobseekers' subsequent spatial job search. Further, it is assessed to what extent mobility between working regions is associated with wage growth. The results show that the working region functions as a prominent geographical anchor around which the new job search is focused. The jobseekers that do find a job far away from their old working region receive a small wage premium, but this premium disappears if selectivity is taken into account. It is concluded that employees demonstrate substantial stickiness to their working locations, and that this is motivated by asymmetry in search costs. No evidence was found that mobility between working regions in itself affects wages." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Pan, Wei-fong (2019): Building sectoral job search indices for the United States. In: Economics Letters, Jg. 180, H. July, S. 89-93. DOI:10.1016/j.econlet.2019.04.019

Abstract

"This study investigates job search activity in the United States by constructing a set of sectoral job search activity indices based on Internet search volumes. The indices are positively associated with countercyclical labour market measures, including unemployment and layoff rates, but are negatively associated with procyclical measures. Overall, our evidence supports previous empirical findings - job search intensity is countercyclical - which contradicts the theoretical model's prediction." (Author's abstract, © 2019 Elsevier) ((en))

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Sansale, Rebecca, Stephen B. DeLoach & Mark Kurt (2019): Unemployment duration and the personalities of young adults workers. In: Journal of Behavioral and Experimental Economics, Jg. 79, H. April, S. 1-11. DOI:10.1016/j.socec.2019.01.002

Abstract

"As in many countries, young adult workers in the United States have experienced tremendous employment volatility in recent years. In this paper, we examine the role personality plays in determining the duration of unemployment among young adults in the United States between 2008 and 2015. Evidence from estimation of a Competing Risks Model shows that when faced with unemployment, conscientious individuals are significantly more likely to find employment. Individuals scoring higher in neuroticism are more likely to leave the workforce and less likely to go back to school, while more agreeable individuals are more likely to go back to school. Because personality remains malleable for young adults, these results have implications for the literature related to job-search behavior as well as for educational and job-training programs." (Author's abstract, © 2019 Elsevier) ((en))

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Suárez, Patricia, Matías Mayor, Begoña Cueto & María-Henar Salas-Olmedo (2019): The spatial structure of the labour market across public jobcentres. Does their accessibility matter? In: Papers in regional science, Jg. 98, H. 3, S. 1359-1372. DOI:10.1111/pirs.12414

Abstract

"The objective is to analyse how one's place of residence affects the probability of finding a job and to measure the definition of the public jobcentre catchment area, which contributes to improving labour outcomes in the most deprived areas. We propose a multilevel model to estimate the probability of finding a job controlling for individual characteristics and discerning the effect of the place of residence and the contribution of public employment centres. We use an administrative register of jobseekers (70,379) grouped by 384 postal codes and 24 jobcentres. The econometric results confirm the hypothesis that there is a strong residence effect that is not sufficiently mitigated by public employment services." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Theys, Tobias, Nick Deschacht, Stef Adriaenssens & Dieter Verhaest (2019): The evolution of inter-regional spatial mismatch in the USA. The role of skills and spatial structure. In: Urban studies, Jg. 56, H. 13, S. 2654-2669. DOI:10.1177/0042098018803017

Abstract

"The literature on spatial mismatch often focuses on a mismatch within cities or local labour markets. This paper looks at the spatial mismatch between local labour markets. Using US data, we study the evolution of inter-regional mismatch between 1980 and 2010 and how this evolution varies across skill levels. Since we expect the spatial structure of supply and demand in the labour market to play a central role at this geographical level, we develop an extension of the spatial mismatch index, as the standard version does not take this spatial structure into account. Our results indicate that spatial mismatch has been increasing over the past decades, an increase that is largely attributable to spatial structure effects. The inter-regional spatial mismatch mainly affects low-skilled jobs and workers: our findings suggest that the degree of the spatial mismatch for low-skilled, relative to high-skilled workers, increased from a ratio of two in 1980 to almost four in 2010." (Author's abstract, IAB-Doku) ((en))

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Wen, Le & Sholeh A. Maani (2019): Job mismatches and career mobility. In: Applied Economics, Jg. 51, H. 10, S. 1010-1024. DOI:10.1080/00036846.2018.1524569

Abstract

"Does over-education assist or hinder occupational advancement? Career mobility theory hypothesizes that over-education leads to a higher level of occupational advancement and wage growth over time, with mixed international empirical evidence. This paper re-tests career mobility theory directly using a rich Australian longitudinal data set. A dynamic random effects probit model is employed to examine upward occupational mobility, considering two-digit occupational rank advancement and wage growth over three-year intervals. The 'Household, Income and Labour Dynamics in Australia' data across nine years are employed, and a Mundlak correction model is adopted to adjust for unobserved heterogeneity effects and potential endogeneity, both of which are important to over-education analysis. Contrary to career theory, the results point to job mismatch as an economic concern rather than a passing phase, regardless of whether or not workers are skill-matched. Results further show the importance of adjusting for endogeneity." (Author's abstract, IAB-Doku) ((en))

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de Larquier, Guillemette & Géraldine Rieucau (2019): Valuation and matching: A conventionalist explanation of labor markets by firms' recruitment channels. In: Historical social research, Jg. 44, H. 1, S. 52-72. DOI:10.12759/hsr.44.2019.1.52-72

Abstract

"In line with the conventionalist works on recruitment and intermediation in the labor market, this article argues that, in order to shape uncertainty about the quality of matching, recruitment channels used by firms rely on 'investments in forms.' The first investment corresponds to the definition of the boundaries of the labor market (i.e., the outline of the labor supply from the firm's point of view); the second one corresponds to the format of information (i.e., the 'standard' or 'personalized' language used by channels to convey information). The firm's resort to a given channel is explained by its internal organization and its valuation of what is a good applicant (depending on its 'labor quality convention'). By crossing-over the two types of investment in forms, we distinguish four matching dynamics. Each type of dynamics is illustrated by examples coming from a qualitative survey of recruitment practices in four French service oriented sectors." (Author's abstract, © GESIS) ((en))

Abstract

"Over recent decades, online job portals have become important recruitment and job search tools. Beyond assisting skills matching, the job vacancies these portals gather can also be used to analyse labour market trends in real time, generating evidence that can inform education and training policies and help ensure that people's skills meet the needs of rapidly changing workplaces. These insights can complement skills intelligence based on information collected via traditional methods, such as Cedefop's Europe-wide skills forecasts, the European skills and jobs survey, and the European skills index. This booklet outlines the main features of online job vacancies and the key characteristics of Cedefop's new system to collect and analyse them. It accompanies the first release of results based on the collection and analysis of online job vacancies in seven EU Member States." (Author's abstract, IAB-Doku) ((en))

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Adams, Camilla, Jonathan Meer & CarlyWill Sloan (2018): The minimum wage and search effort. (NBER working paper 25128), Cambrige, Mass., 36 S. DOI:10.3386/w25128

Abstract

"Labor market search-and-matching models posit supply-side responses to minimum wage increases that may lead to improved matches and lessen or even reverse negative employment effects. Yet there is no empirical evidence on this crucial assumption. Using event study analysis of recent minimum wage increases, we find that increases to minimum wage do not increase the likelihood of searching, but do lead to large yet very transitory spikes in search effort by individuals already looking for work. The results are not driven by changes in the composition of searchers." (Author's abstract, IAB-Doku) ((en))

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Andersson, Josefine (2018): Early counselling of displaced workers. Effects of collectively funded job search assistance. (Working papers / Institute for Evaluation of Labour Market and Education Policy 2018,22), Uppsala, 56 S.

Abstract

"Employment Security Agreements, which are elements of Swedish collective agreements, offer a unique opportunity to study very early job search counselling of displaced workers. These agreements provide individual job search assistance to workers who are dismissed due to redundancy, often as early as during the period of notice. Compared to traditional labor market policies, the assistance provided is earlier and more responsive to the needs of the individual worker. In this study, I investigate the effects of the individual counseling and job search assistance provided through the Employment Security Agreement for Swedish blue-collar workers on job finding and subsequent job quality. The empirical strategy is based on the rules of eligibility in a regression discontinuity framework. I estimate the effect for workers with short tenure, who are dismissed through mass-layoffs. My results do not suggest that the program has an effect on the probability of becoming unemployed, the duration of unemployment, or income. However, the results indicate that the program has a positive effect on the duration of the next job." (Author's abstract, IAB-Doku) ((en))

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Arni, Patrick & Amelie Schiprowski (2018): Job search requirements, effort provision and labor market outcomes. (CESifo working paper 7200), München, 53 S.

Abstract

"How effective are effort targets? This paper provides novel evidence on the effects of job search requirements on effort provision and labor market outcomes. Based on large-scale register data, we estimate the returns to required job search effort, instrumenting individual requirements with caseworker stringency. Identification is ensured by the conditional random assignment of job seekers to caseworkers. We find that the duration of un- and non-employment both decrease by 3% if the requirement increases by one monthly application. When instrumenting actual applications with caseworker stringency, an additionally provided monthly application decreases the length of spells by 4%. In line with theory, we further find that the effect of required effort decreases in the individual's voluntary effort. Finally, the requirement level causes small negative effects on job stability, reducing the duration of re-employment spells by 0.3% per required application. We find a zero effect on re-employment wages." (Author's abstract, IAB-Doku) ((en))

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Belot, Michèle, Philipp Kircher & Paul Muller (2018): How wage announcements affect job search. A field experiment. (IZA discussion paper 11814), Bonn, 75 S.

Abstract

"We study how job seekers respond to wage announcements by assigning wages randomly to pairs of otherwise similar vacancies in a large number of professions. High wage vacancies attract more interest, in contrast with much of the evidence based on observational data. Some applicants only show interest in the low wage vacancy even when they were exposed to both. Both findings are core predictions of theories of directed/competitive search where workers trade off the wage with the perceived competition for the job. A calibrated model with multiple applications and on-the-job search induces magnitudes broadly in line with the empirical findings." (Author's abstract, IAB-Doku) ((en))

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Bova, Elva, João Tovar Jalles & Christina Kolerus (2018): Shifting the Beveridge curve. What affects labor market matching? In: International Labour Review, Jg. 157, H. 2, S. 267-306. DOI:10.1111/ilr.12046

Abstract

"This paper explores conditions and policies that could affect the matching between labor demand and supply. We identify shifts in the Beveridge curves for 12 OECD countries between 2000Q1 and 2013Q4 using three complementary methodologies and analyze the short-run determinants of these shifts by means of limited-dependent variable models. We find that labor force growth as well as employment protection legislation reduce the likelihood of an outward shift in the Beveridge curve,. Our findings also show that the matching process is more difficult the higher the share of employees with intermediate levels of education in the labor force and when long-term unemployment is more pronounced. Policies which could facilitate labor market matching include active labor market policies, such as incentives for start-up and job sharing programs. Passive labor market policies, such as unemployment benefits, as well as labor taxation render matching significantly more difficult." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Brzustowski, Thomas, Nicolas Petrosky-Nadeau & Etienne Wasmer (2018): Disentangling goods, labor, and credit market frictions in three European economies. In: Labour economics, Jg. 50, H. March, S. 180-196. DOI:10.1016/j.labeco.2016.05.006

Abstract

"We build a flexible model with search frictions in three markets: credit, labor, and goods markets. We then apply this model (called CLG) to three different economies: a flexible, finance-driven economy (the UK), an economy with wage moderation (Germany), and an economy with structural rigidities (Spain). In these three countries, goods and credit market frictions play a dominant role in entry costs and account for 75% to 85% of the total entry costs. In the goods market, adverse supply shocks are amplified through their propagation to the demand side, as they also imply income losses for consumers. This adds up to, at most, an additional 15% to 25% to the impact of the shocks. Finally, the speed of matching in the goods market and the credit market accounts for a small fraction of unemployment: most variation in unemployment comes from the speed of matching in the labor market." (Author's abstract, © 2016 Elsevier) ((en))

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Carlsson, Mikael & Andreas Westermark (2018): Endogenous separations, wage rigidities and unemployment volatility. (Working papers / Institute for Evaluation of Labour Market and Education Policy 2018,05), Uppsala, 33 S.

Abstract

"We show that in microdata, as well as in a search and matching model with flexible wages for new hires, wage rigidities of incumbent workers have substantial effects on separations and unemployment volatility. Allowing for an empirically relevant degree of wage rigidities for incumbent workers drives unemployment volatility, as well as the volatility of vacancies and tightness to that in the data. Thus, the degree of wage rigidity for newly hired workers is not a sufficient statistic for determining the effect of wage rigidities on macroeconomic outcomes. This finding affects the interpretation of a large empirical literature on wage rigidities." (Author's abstract, IAB-Doku) ((en))

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Carlsson, Magnus, Luca Fumarco & Dan-Olof Rooth (2018): Ethnic discrimination in hiring, labour market tightness and the business cycle. Evidence from field experiments. In: Applied Economics, Jg. 50, H. 24, S. 2652-2663. DOI:10.1080/00036846.2017.1406653

Abstract

"Several studies using observational data suggest that ethnic discrimination increases in downturns of the economy. We investigate whether ethnic discrimination depends on labour market tightness using data from correspondence studies. We utilize three correspondence studies of the Swedish labour market and two different measures of labour market tightness. These two measures produce qualitatively similar results, and, opposite to the observational studies, suggest that ethnic discrimination in hiring decreases in downturns of the economy." (Author's abstract, IAB-Doku) ((en))

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Cockx, Bart, Muriel Dejemeppe, Andrey Launov & Bruno Van der Linden (2018): Imperfect monitoring of job search. Structural estimation and policy design. In: Journal of labor economics, Jg. 36, H. 1, S. 75-120. DOI:10.1086/693868

Abstract

"We build and estimate a nonstationary structural job search model that incorporates the main stylized features of a typical job search monitoring scheme in unemployment insurance (UI) and acknowledges that search effort and requirements are measured imperfectly. On the basis of Belgian data, monitoring is found to affect search behavior only weakly because assessments were scheduled late and infrequently, the monitoring technology was not sufficiently precise, and lenient Belgian UI results in caseloads that are less responsive to incentives than elsewhere. Simulations show how changing the aforementioned design features can enhance effectiveness and that precise monitoring is key in this." (Author's abstract, IAB-Doku) ((en))

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Conlon, John, J. Laura Pilossoph, Matthew Wiswall & Basit Zafar (2018): Labor market search with imperfect information and learning. (NBER working paper 24988), Cambrige, Mass., 65 S. DOI:10.3386/w24988

Abstract

"We investigate the role of information frictions in the US labor market using a new nationally representative panel dataset on individuals' labor market expectations and realizations. We find that expectations about future job offers are, on average, highly predictive of actual outcomes. Despite their predictive power, however, deviations of ex post realizations from ex ante expectations are often sizable. The panel aspect of the data allows us to study how individuals update their labor market expectations in response to such shocks. We find a strong response: an individual who receives a job offer one dollar above her expectation subsequently adjusts her expectations upward by $0.47. The updating patterns we document are, on the whole, inconsistent with Bayesian updating. We embed the empirical evidence on expectations and learning into a model of search on- and off- the job with learning, and show that it is far better able to fit the data on reservation wages relative to a model that assumes complete information. The estimated model indicates that workers would have lower employment transition responses to changes in the value of unemployment through higher unemployment benefits than in a complete information model, suggesting that assuming workers have complete information can bias estimates of the predictions of government interventions. We use the framework to gauge the welfare costs of information frictions which arise because individuals make uninformed job acceptance decisions and find that the costs due to information frictions are sizable, but are largely mitigated by the presence of learning." (Author's abstract, IAB-Doku) ((en))

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DeLoach, Stephen B. & Mark Kurt (2018): On-the-job search, mismatch and worker heterogeneity. In: Journal of labor research, Jg. 39, H. 2, S. 219-233. DOI:10.1007/s12122-018-9263-1

Abstract

"This paper empirically examines the search behavior of currently employed workers to understand changes in on-the-job search across different types of employed individuals and varying labor market conditions. Using data from the American Time Use Survey, we estimate the responsiveness of workers with varying levels of productivity and job-match quality to regional labor market conditions. We find that those workers who are less-productive, mismatched in their current position, and high-productivity, mismatched workers are more likely to engage in search than other workers. These results have implications for models built on job mismatch, as well as for models seeking to explain increasing inequality and wage dispersion." (Author's abstract, © Springer-Verlag) ((en))

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Devaro, Jed & Oliver Gürtler (2018): Advertising and labor market matching. A tour through the times. In: Journal of labor economics, Jg. 36, H. 1, S. 253-307. DOI:10.1086/693872

Abstract

"Surveying employment-related newspaper advertisements over several centuries, we identify four eras (neither workers nor firms posted ads, mostly workers posted ads, mostly firms posted ads, and both parties regularly posted ads). These eras can be understood in the context of the equilibrium of a matching model that incorporates strategic interactions by both sides of the labor market. Potential explanations for transitions across eras include increasing literacy rates, expansion of social insurance programs, growth in the labor force and firm size, reduction in mobility costs and search frictions, and the internet." (Author's abstract, IAB-Doku) ((en))

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Faberman, R. Jason & Guido Menzio (2018): Evidence on the relationship between recruiting and the starting wage. In: Labour economics, Jg. 50, H. March, S. 67-79. DOI:10.1016/j.labeco.2017.01.003

Abstract

"Using data from the Employment Opportunity Pilot Project, we examine the relationship between the starting wage paid to the worker filling a vacancy, the number of applications attracted by the vacancy, the number of candidates interviewed for the vacancy, and the duration of the vacancy. We find that the wage is positively related to the duration of a vacancy and negatively related to the number of applications and interviews per week. We show that these surprising findings are consistent with a view of the labor market in which firms post wages and workers direct their search based on these wages if workers and jobs are heterogeneous and the interaction between the worker's type and the job's type in production satisfies some rather natural assumptions." (Author's abstract, © 2017 Elsevier) ((en))

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Fernández-Blanco, Javier & Edgar Preugschat (2018): On the effects of ranking by unemployment duration. In: European Economic Review, Jg. 104, H. May, S. 92-110. DOI:10.1016/j.euroecorev.2018.02.003

Abstract

"We propose a theory based on the firm's hiring behavior that rationalizes the observed significant decline of callback rates for an interview and exit rates from unemployment and the mild decline of reemployment wages over unemployment duration. We build a directed search model with symmetric incomplete information on worker types and non-sequential search by firms. Sorting due to firms' testing of applicants in the past makes expected productivity fall with duration, which induces firms to rank applicants by duration. In equilibrium callback and exit rates both fall with unemployment duration. In our numerical exercise using U.S. data we show that our model can replicate quite well the observed falling patterns, with the firm's ranking decision accounting for a sizable part." (Author's abstract, © 2018 Elsevier) ((en))

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Flabbi, Luca & James Mabli (2018): Household search or individual search: does it matter? In: Journal of labor economics, Jg. 36, H. 1, S. 1-46. DOI:10.1086/693864

Abstract

"Most labor market search models ignore the fact that decisions are often made at the household level. We fill this gap by developing and estimating a household search model with on-the-job search and labor supply. We find that ignoring the household as a decision-making unit has relevant empirical consequences. In estimation, the individual search model implies gender wage offer differentials almost twice as large as the household search model. In the application, the individual search model implies female lifetime inequality 30% lower than the household search model. Labor market policy effects on lifetime inequality are also sensitive to the specification." (Author's abstract, IAB-Doku) ((en))

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Fredriksson, Peter, Lena Hensvik & Oskar Nordström Skans (2018): Mismatch of talent. Evidence on match quality, entry wages and job mobility. In: The American economic review, Jg. 108, H. 11, S. 3303-3338. DOI:10.1257/aer.20160848

Abstract

"We examine the impact of mismatch on entry wages, separations, and wage growth using unique data on worker talents. We show that workers are sorted on comparative advantage across jobs within occupations. The starting wages of inexperienced workers are unrelated to mismatch. For experienced workers, on the other hand, mismatch is negatively priced into their starting wages. Separations and wage growth are more strongly related to mismatch among inexperienced workers than among experienced workers. These findings are consistent with models of information updating, where less information is available about the quality of matches involving inexperienced workers." (Author's abstract, IAB-Doku) ((en))

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Gehrke, Britta & Enzo Weber (2018): Identifying asymmetric effects of labor market reforms. In: European Economic Review, Jg. 110, H. November, S. 18-40., 2018-07-17. DOI:10.1016/j.euroecorev.2018.07.006

Abstract

"This paper proposes a novel approach to identify structural long-term driving forces of the labor market and their short-run state-dependent effects. Based on search and matching theory, our empirical model extracts these driving forces within an unobserved components approach. We relate changes in the labor market structures to reforms that enhance the flexibility of the labor market in expansion and recession. Results for Germany and Spain show that labor market reforms have substantially weaker beneficial effects in the short run when implemented in recessions. From a policy perspective, these results highlight the costs of introducing reforms in recessions." (Author's abstract, © 2018 Elsevier) ((en))

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Hairault, Jean-Olivier & Anastasia Zhutova (2018): The cyclicality of labor-market flows. A multiple-shock approach. In: European Economic Review, Jg. 103, H. April, S. 150-172. DOI:10.1016/j.euroecorev.2018.01.008

Abstract

"In this paper, we aim to establish some stylized facts about the relative contributions of the job-finding and separation rates to unemployment dynamics depending on the nature of structural shocks. The shocks in our Bayesian Structural VAR model are identified using a sign-restriction approach, and capture shifts in the three conditions determining labor-market equilibrium in matching models: the Beveridge curve, and the job-creation and job-destruction conditions. Using both US and French data, we identify an aggregate shock to match profitability (the aggregate-profitability shock), a shock specific to existing jobs (the reallocation shock) and a shock to the efficiency of the matching process (the matching-efficiency shock). We find that the relative contributions of the job finding and separation rates are notably different across shocks in both countries, but are similar across countries for each type of shock. Labor market dynamics appear to be Transatlantic despite well-known institutional differences. However, it must be emphasized that the reaction of the labor market variables to the matching-efficiency shock seems more muted in the US than in France." (Author's abstract, © 2018 Elsevier) ((en))

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Hall, Robert E. & Andreas I. Mueller (2018): Wage dispersion and search behavior : The importance of nonwage job values. In: Journal of Political Economy, Jg. 126, H. 4, S. 1594-1637. DOI:10.1086/697739

Abstract

"We use a rich new body of data on the experiences of unemployed job seekers to determine the sources of wage dispersion and to create a search model consistent with the acceptance decisions the job seekers made. We identify the distributions of four key variables: offered wages, offered nonwage job values, job seekers' nonwork alternatives, and job seekers' personal productivities. We find that, conditional on personal productivity, the standard deviation of offered log wages is moderate, at 0.24, whereas the dispersion of the offered nonwage component is substantially larger, at 0.34. The resulting dispersion of offered job values is 0.38." (Author's abstract, IAB-Doku) ((en))

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Hoffman, Mitchell, Lisa B. Kahn & Danielle Li (2018): Discretion in hiring. In: The Quarterly Journal of Economics, Jg. 133, H. 2, S. 765-800. DOI:10.1093/qje/qjx042

Abstract

"Job-testing technologies enable firms to rely less on human judgment when making hiring decisions. Placing more weight on test scores may improve hiring decisions by reducing the influence of human bias or mistakes but may also lead firms to forgo the potentially valuable private information of their managers. We study the introduction of job testing across 15 firms employing low-skilled service sector workers. When faced with similar applicant pools, we find that managers who appear to hire against test recommendations end up with worse average hires. This suggests that managers often overrule test recommendations because they are biased or mistaken, not only because they have superior private information." (Author's abstract, IAB-Doku) ((en))

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Immervoll, Herwig & Carlo Knotz (2018): How demanding are activation requirements for jobseekers. (OECD social, employment and migration working papers 215), Paris, 53 S. DOI:10.1787/2bdfecca-en

Abstract

"This paper presents new information on activity-related eligibility criteria for unemployment and related benefits in OECD- and EU-countries in 2017, comparing the strictness of 'demanding' elements built into unemployment benefits across countries and over time. Eligibility criteria for unemployment benefits determine what claimants need to do to successfully claim benefits initially or to continue receiving them. Benefit systems feature specific rules that define the type of job offers that claimants need to accept, requirements for papering on the outcomes of independent job-search efforts, obligations to participate in active labour market programmes, as well as sanctions for failing to meet these requirements. Such rules aim to strengthen incentives to look for, prepare for, and accept employment. They may also be used as a targeting device to reduce demands on benefit systems, and on associated employment services. While this may serve to limit support to genuine jobseekers, strict requirements can also exclude some intended recipients from financial and re-employment support, e.g., by discouraging them from applying. This paper presents detailed information on policy rules in 2017, summarises them into an overall policy indicator of eligibility strictness, and gauges recent policy trends by documenting changes in the strictness measures. A novelty is the inclusion of lower-tier unemployment or social assistance benefits in the compilation of policy rules. Results document a large number of reforms enacted after the Great Recession and suggest a slight convergence of policy rules across countries even though overall measures of the strictness of activity-related eligibility criteria have remained broadly unchanged during the recent past. In countries with multiple layers of support for the unemployed, availability requirements tend to be more demanding for lower-tier assistance benefits, while sanction rules tend to be more stringent for first-tier programmes." (Author's abstract, IAB-Doku) ((en))

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Kalfa, Eleni & Matloob Piracha (2018): Social networks and the labour market mismatch. In: Journal of population economics, Jg. 31, H. 3, S. 877-914. DOI:10.1007/s00148-017-0677-5

Abstract

"This paper assesses the extent to which social contacts and ethnic concentration affect the education-occupation mismatch of natives and immigrants. Using Australian panel data and employing a dynamic random effects probit model, we show that social capital exacerbates the incidence of over-education, particularly for females. Furthermore, for the foreign born, ethnic concentration significantly increases the incidence of over-education. Using an Alternative Index, we also show that social participation, friends and support and ethnic concentration are the main contributors in generating a mismatch, while reciprocity and trust does not seem to have any effect on over-education for both, immigrants and natives. Finally, we show that social networks are more beneficial for the relatively better educated." (Author's abstract, © Springer-Verlag) ((en))

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Kerler, Monira & Karin Steiner (2018): Mismatch am Arbeitsmarkt: Indikatoren, Handlungsfelder und Matching-Strategien im Wirkungsbereich von Vermittlung und Beratung. (AMS report 133), Wien, 93 S.

Abstract

"In dieser Publikation wurde eine Einführung in das Thema 'Mismatch am Arbeitsmarkt' gegeben. Im Vordergrund standen hierbei die Perspektiven von VermittlerInnen und BeraterInnen im AMS-Kontext, aber auch die Perspektive der Arbeitsuchenden selbst. Ziel war es, einen aktuellen Überblick über das Phänomen des Mismatch, dessen Ursachen, damit verbundene Herausforderungen sowie Mismatch-Indikatoren zu geben, das Jobsuchverhalten zu betrachten und die Auswirkungen von Mismatch auf Arbeitsuchende aufzuzeigen. Ebenso wurden die Motive und Bedarfe seitens VermittlerInnen, Arbeitgebern und Arbeitsuchenden berücksichtigt. Dabei wurde einerseits Wert auf einen Bezug zum Forschungsstand gelegt, andererseits wurden der Fokus auf praxisnahe und handlungsorientierte Bezüge gerichtet und die Einflussmöglichkeiten seitens der Vermittlung und Beratung ins Zentrum gestellt. Die unterschiedlichen Aspekte von und Einflussfaktoren auf Matching-Prozesse wurden daher zum einen von der Seite der bisherigen Forschungsergebnisse (hier und da auch von der Seite der theoretischen Fundierung) betrachtet. Zum anderen wurden auf Basis von eigenen, qualitativ angelegten Erhebungen Analysen durchgeführt und die Ergebnisse detailliert dargestellt." (Textauszug, IAB-Doku)

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Kettemann, Andreas, Andreas I. Mueller & Josef Zweimüller (2018): Vacancy durations and entry wages. Evidence from linked vacancy-employer-employee data. (IZA discussion paper 11852), Bonn, 71 S.

Abstract

"This paper explores the relationship between the duration of a vacancy and the starting wage of a new job, using unusually informative data comprising detailed information on vacancies, the establishments posting the vacancies and the workers eventually filling the vacancies. We find that vacancy durations are negatively correlated with the starting wage and that this negative association is particularly strong with the establishment component of the starting wage. We also confirm previous findings that growing establishments fill their vacancies faster. To understand the relationship between establishment growth, vacancy filling and entry wages, we calibrate a model with directed search and ex-ante heterogeneous workers and firms. We find a strong tension between matching the sharp increase in vacancy filling for growing firms and the response of vacancy filling to firm-level wages. We discuss the implications of this finding as well as potential resolutions." (Author's abstract, IAB-Doku) ((en))

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Krueger, Alan B. & Orley Ashenfelter (2018): Theory and evidence on employer collusion in the franchise sector. (NBER working paper 24831), Cambrige, Mass., 28 S. DOI:10.3386/w24831

Abstract

"In this paper we study the role of covenants in franchise contracts that restrict the recruitment and hiring of employees from other units within the same franchise chain in suppressing competition for workers. Based on an analysis of 2016 Franchise Disclosure Documents, we find that 'no-poaching of workers agreements' are included in a surprising 58 percent of major franchisors' contracts, including McDonald's, Burger King, Jiffy Lube and H&R Block. The implications of these no-poaching agreements for models of oligopsony are also discussed. No-poaching agreements are more common for franchises in low-wage and high-turnover industries." (Author's abstract, IAB-Doku) ((en))

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Landay, Karen & Sarah DeArmond (2018): Recruitment Process Outsourcing and Recruiter and Hiring Firm Characteristics. A Two Study Investigation. In: Journal of personnel psychology, Jg. 17, H. 4, S. 183-192. DOI:10.1027/1866-5888/a000206

Abstract

"Recruitment process outsourcing (RPO) is rapidly expanding across the globe. However, understanding of its effects on job applicants remains limited. Using signaling theory, we examined the effects of recruiter characteristics, hiring firm reputation, and RPO on organization attraction in two experimental studies. Results showed significant main effects of recruiter competence, recruiter personableness, and hiring firm reputation on organization attraction. We also found significant interactions between both recruiter characteristics and RPO. This indicates that, contrary to prior research, RPO is more accurately conceptualized as a boundary condition that indicates to applicants when recruiter characteristics are relevant signals." (Author's abstract, © 2018 Hogrefe Verlag) ((en))

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Lazear, Edward P., Kathryn L. Shaw & Christopher T. Stanton (2018): Who gets hired? The importance of finding an open slot. In: Journal of labor economics, Jg. 36, H. S1, S. S133-S181. DOI:10.1086/694908

Abstract

"Being hired into a job depends not only on one's own skill but also on that of other applicants. When another able applicant applies, a well-suited worker may be forced into unemployment or into accepting an inferior job. A model of this process defines over- and underqualification and provides predictions on its prevalence and on the wages of mismatched workers. It also implies that unemployment is concentrated among the least skilled workers, while vacancies are concentrated among high-skilled jobs. Four data sets are used to confirm the implications and establish that the hiring probability is low when competing applicants are able." (Author's abstract, IAB-Doku) ((en))

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Manoli, Dayanand S., Marios Michaelides & Ankur Patel (2018): Long-term effects of job-search assistance. Experimental evidence using administrative tax data. (NBER working paper 24422), Cambrige, Mass., 49 S. DOI:10.3386/w24422

Abstract

"This paper uses administrative tax data to examine the long-term effects of an experimental job-search assistance program operating in Nevada in 2009. The program required randomly-selected unemployed workers who had just started collecting unemployment insurance (UI) benefits to undergo an eligibility review and receive personalized job-counseling services. The program led to substantial short-term reductions in UI receipt, and to persistent, long-term increases in employment and earnings. The program also affected participants' family outcomes, including total income, tax filing, tax liability, and home ownership. These findings show that job-search assistance programs may produce substantial long-term effects for participants and their families." (Author's abstract, IAB-Doku) ((en))

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Marinescu, Ioana & Roland Rathelot (2018): Mismatch unemployment and the geography of job search. In: American Economic Journal. Macroeconomics, Jg. 10, H. 3, S. 42-70. DOI:10.1257/mac.20160312

Abstract

"Could we significantly reduce US unemployment by helping job seekers move closer to jobs? Using data from the leading employment board CareerBuilder.com, we show that, indeed, workers dislike applying to distant jobs: job seekers are 35 percent less likely to apply to a job 10 miles (mi.) away from their zip code of residence. However, because job seekers are close enough to vacancies on average, this distaste for distance is fairly inconsequential: our search and matching model predicts that relocating job seekers to minimize unemployment would decrease unemployment by only 5.3 percent. Geographic mismatch is thus a minor driver of aggregate unemployment." (Author's abstract, IAB-Doku) ((en))

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Moscarini, Giuseppe & Fabien Postel-Vinay (2018): On the job search and business cycles. (IZA discussion paper 11853), Bonn, 54 S.

Abstract

"We propose a highly tractable way of analyzing business cycles in an environment with random job search both off- and and on-the-job (OJS). Ex post heterogeneity in productivity across jobs generates a job ladder. Firms Bertrand-compete for employed workers, as in the Sequential Auctions protocol of Postel-Vinay and Robin (2002). We identify three channels through which OJS amplifies and propagates aggregate shocks: (i) a higher estimated elasticity of the matching function, when recognizing that at least half of all hires are from other employers; (ii) the differential returns to hiring employed and unemployed job applicants, whose proportions naturally vary over the business cycle; (iii) within employment, the slow reallocation of workers through OJS across rungs of the job ladder, generating endogenous, slowly evolving opportunities for further poaching, which feed back on job creation incentives. Endogenous job destruction, due to either aggregate or idiosyncratic shocks, is countercyclical and thus raises the cyclical volatility of unemployment, closer to its empirical value; but it also stimulates job creation in recessions, to take advantage of the fresh batch of unemployed, and tilts the Beveridge curve up. OJS corrects this tendency and restores a vacancy-unemployment trade-off more in line with empirical observations." (Author's abstract, IAB-Doku) ((en))

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Obiols-Homs, F. & V. Sánchez-Marcos (2018): Education outcomes and the labor market. In: Labour economics, Jg. 54, H. October, S. 14-28. DOI:10.1016/j.labeco.2018.06.001

Abstract

"The quality of education appears to be negatively correlated with both the overeducation of workers at the tasks they perform and the unemployment rate across EU-15 countries, and positively correlated with the wage premium associated to tertiary education. We develop a model of the labor market with frictions to quantitatively investigate the impact of the education outcomes on the labor market. We show that both the ability of educated and non educated workers have sizable effects on the incentives of firms regarding the type of vacancies they open and also regarding the incentives of educated workers as of where to search for a job. Therefore education outcomes are relevant to understand the overeducation phenomena observed in the labor market. According to our quantitative analysis had the quality of education observed in Spain been similar to the European average then the overeducation rate would have been between 5 and 10 percentage points lower and the unemployment rate of the two types of workers would be reduced by 40%, but the tertiary education wage premium would be slightly smaller than in the benchmark economy." (Author's abstract, © 2018 Elsevier) ((en))

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Shi, Lulu P., Christian Imdorf, Robin Samuel & Stefan Sacchi (2018): How unemployment scarring affects skilled young workers. Evidence from a factorial survey of Swiss recruiters. In: Journal for labour market research, Jg. 52, H. 1, S. 1-15. DOI:10.1186/s12651-018-0239-7

Abstract

"We ask how employers contribute to unemployment scarring in the recruitment process in the German-speaking part of Switzerland. By drawing on recruitment theories, we aim to better understand how recruiters assess different patterns of unemployment in a job candidate's CV and how this affects the chances of young applicants being considered for a vacancy. We argue that in contexts with tight school-work linkage and highly standardised Vocational Education and Training systems, the detrimental effect of early unemployment depends on how well the applicant's profile matches the requirements of the advertised position. To test this assumption, we surveyed Swiss recruiters who were seeking to fill positions during the time of data collection. We employed a factorial survey experiment that tested how the (un)employment trajectories in hypothetical young job applicants' CV affected their chances of being considered for a real vacancy. Our results show that unemployment decreases the perceived suitability of an applicant for a specific job, which implies there is a scarring effect of unemployment that increases with the duration of being unemployed. But we also found that these effects are moderated by how well the applicant's profile matches the job's requirements. Overall, the worse the match between applicant's profile and the job profile, the smaller are the scarring effects of unemployment. In sum, our findings contribute to the literature by revealing considerable heterogeneity in the scarring effects of unemployment. Our findings further suggest that the scarring effects of unemployment need to be studied with regard to country-specific institutional settings, the applicants' previous education and employment experiences, and the job characteristics." (Author's abstract, © Springer-Verlag) ((en))

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Sugie, Naomi F. (2018): Work as foraging: a smartphone study of job search and employment after prison. In: American Journal of Sociology, Jg. 123, H. 5, S. 1453-1491. DOI:10.1086/696209

Abstract

"The past several decades have seen a decline in employment rates and labor force participation, particularly among low-skilled, minority men living in poor areas. As low-skill jobs disappear from poor places, how do marginalized job seekers navigate this landscape? Using over 8,000 daily measures of search and work collected from smartphones distributed to 133 men recently released from prison, this article presents the concept of work as foraging, where people work a variety of extremely precarious opportunities that span across job types. Sequence analysis methods describe distinct patterns of search and work that unfold over time, where most people cease their search efforts after the first month and maintain a state of very irregular and varied work. Although there is substantial heterogeneity in patterns, foraging is a common strategy of survival work." (Author's abstract, IAB-Doku) ((en))

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Verhaest, Dieter & Stijn Baert (2018): The effects of workplace learning in higher education on employment and match quality. Is there an early-career trade-off? In: Empirical economics, Jg. 55, H. 3, S. 1229-1270. DOI:10.1007/s00181-017-1308-4

Abstract

"We investigate whether the choice for a higher education program with a substantial workplace learning component entails an early-career trade-off between on the one hand higher employment chances and better initial matches (when opting for a program with workplace learning) and on the other hand a lower risk of bad match persistence (when opting for a program without workplace learning). To this end, we rely on longitudinal data of Belgian graduates that track their careers up until the age of 29. We model the program choice, the transition to a good match and the preceding transition to a bad match simultaneously. To account for non-random selection into programs and into bad matches, the Timing of Events method is combined with an exclusion restriction. After accounting for observed and unobserved heterogeneity, we do not find evidence for a trade-off. This result contributes to the debate about the efficiency of vocationalizing tertiary education programs through the implementation of workplace learning." (Author's abstract, © Springer-Verlag) ((en))

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Zweimüller, Josef (2018): Unemployment insurance and the labor market. In: Labour economics, Jg. 53, H. August, S. 1-14. DOI:10.1016/j.labeco.2018.06.003

Abstract

"The existing literature assumes that unemployment insurance (UI) affects the labor market through the job finding rate of eligible workers. Recent research has started to broaden the perspective. In this paper, I show evidence for UI effects through three other margins: (i) search externalities; (ii) take-up of other welfare state programs; and (iii) job separations. The evidence suggests that the analysis of optimal UI should take a more comprehensive view of how UI affects the labor market." (Author's abstract, © 2018 Elsevier) ((en))

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da Motta Veiga, Serge P. & Daniel B. Turban (2018): Insight into job search self-regulation. Effects of employment self-efficacy and perceived progress on job search intensity. In: Journal of vocational behavior, Jg. 108, H. October, S. 57-66. DOI:10.1016/j.jvb.2018.06.010

Abstract

"This study builds on a self-regulation framework to examine the influence of employment self-efficacy and perceived progress on job search intensity. Results from a repeated-measures study with new labor market entrants indicated that job seekers with higher between-person chronic employment self-efficacy put more intensity in their job search compared to those with lower chronic employment self-efficacy. Notably, however, within-person analyses indicated that as employment self-efficacy increased, job search intensity subsequently decreased. These results provide support for social cognitive theory for between-person employment self-efficacy, and for control theory for within-person employment self-efficacy. Furthermore, increased perceived progress was positively related to subsequent job search intensity. The positive relationship of perceived progress with subsequent job search intensity was moderated by chronic employment self-efficacy, such that the relationship was positive only for job seekers with lower chronic employment self-efficacy." (Author's abstract, © 2018 Elsevier) ((en))

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Addison, John T., Liwen Chen & Orgul D. Ozturk (2017): Occupational match quality and gender over two cohorts. (IZA discussion paper 11114), Bonn, 55 S.

Abstract

"Job mobility, especially early in a career, is an important source of wage growth. This effect is typically attributed to heterogeneity in the quality of employee-employer matches, with individuals learning of their abilities and discovering the tasks at which they are most productive through job search. That is, job mobility enables better matches, and individuals move to better their labor market prospects and settle once they find a satisfactory match. In this paper, we show that there are gender differences in match quality and changes in match quality over the course of careers. In particular, we find that females are mismatched more than males. This is true even for females with the best early-career matches. However, the direction of the gender effect differs significantly by education. Only females among the college educated are more mismatched and are more likely to be over-qualified then their male counterparts. These results are seemingly driven by life events, such as child birth. For their part, college-educated males of the younger cohort are worse off in terms of match quality compared to the older cohort, while the new generation of women is doing better on average." (Author's abstract, IAB-Doku) ((en))

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Baker, Scott R. & Andrey Fradkin (2017): The impact of unemployment insurance on job search: evidence from Google search data. In: The Review of Economics and Statistics, Jg. 99, H. 5, S. 756-768. DOI:10.1162/REST_a_00674

Abstract

"Job search is a key choice variable in theories of labor markets but is difficult to measure directly. We develop a job search activity index based on Google search data, the Google Job Search Index (GJSI). We validate the GJSI with both survey- and web-based measures of job search. Unlike those measures, the GJSI is high frequency, geographically precise, and available in real time. We demonstrate the GJSI's utility by using it to study the effects of unemployment insurance policy changes between 2008 and 2014. We find no evidence of an economically meaningful effect of these changes on aggregate search." (Author's abstract, © MIT Press Journals) ((en))

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Bollens, Joost & Bart Cockx (2017): Effectiveness of a job vacancy referral scheme. In: IZA journal of labor policy, Jg. 6, S. 1-24. DOI:10.1186/s40173-017-0094-0

Abstract

"The public employment service (PES) makes use in many countries of vacancy referrals as to facilitate the matching between unemployed workers and vacancies. Based on a 'timing-of-events' approach to control for selective participation, this study evaluates whether this policy instrument enhanced the transition to employment in Flanders (region in northern Belgium). Three referral types are distinguished: (1) referrals actively matched by a caseworker by phone or by e-mail; (2) automatic referrals, in which the match is accomplished by a software without caseworker intervention; and (3) invitations, in which the referral is transmitted to the unemployed in a meeting with a caseworker. All three referral instruments are found to be effective, even many months after the transmission of the referral: the first and third referral types more than triples, respectively, double the transition rate to employment both in short- and long-run, while the automatic referrals enhance this rate by 50% in the first 2 months and double it in the long-run." (Author's abstract, IAB-Doku) ((en))

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Brown, Alessio J. G., Britta Kohlbrecher, Christian Merkl & Dennis J. Snower (2017): The effects of productivity and benefits on unemployment. Breaking the Link. (GLO discussion paper / Global Labor Organization 51), Maastricht, 38 S.

Abstract

"In the standard macroeconomic search and matching model of the labor market, there is a tight link between the quantitative effects of (i) aggregate productivity shocks on unemployment and (ii) unemployment benefits on unemployment. This tight link is at odds with the empirical literature. We show that a two-sided model of labor market search where the household and firm decisions are decomposed into job offers, job acceptances, firing, and quits can break this link. In such a model, unemployment benefits affect households' behavior directly, without having to run via the bargained wage. A calibration of the model based on U.S. JOLTS data generates both a solid amplification of productivity shocks and a moderate effect of benefits on unemployment. Our analysis shows the importance of investigating the effects of policies on the households' work incentives and the firms' employment incentives within the search process." (Author's abstract, IAB-Doku) ((en))

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Buchs, Helen, Emily Murphy & Marlis Buchmann (2017): Landing a job, sinking a career? The trade-off between occupational downgrading and quick reemployment according to unemployed jobseekers' career stage and job prospects. In: Research in Social Stratification and Mobility, Jg. 52, H. December, S. 26-35. DOI:10.1016/j.rssm.2017.10.001

Abstract

"A critical aspect of individual careers is the quality of jobs the unemployed match to at reemployment. The present study examines a trade-off the unemployed face in occupationally segmented labor markets: quickly exiting unemployment via downgraded reemployment or holding out for a skill adequate job while remaining unemployed. We analyze how the likelihood of involuntary status downgrading relates to the relative availability of 'best fit' vacancies at particular stages of a career. This study thus contributes to the broader literature on scar effects incurred from the experience of unemployment. Another contribution is the construction of refined measures of accessible vacancies at the micro level. Proportional hazard rate models are estimated using an inflow sample (2006 - 2014) of unemployed men with vocational education in Switzerland. Our results show that a higher relative availability of 'best fit' vacancies lowers jobseekers' risk of taking up a lower prestige job than the one sought. Career stage also matters for the trade-off between the quality and speed of reemployment, with trial stage unemployed being most responsive to job prospects." (Author's abstract, IAB-Doku) ((en))

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DellaVigna, Stefano, Attila Lindner, Balázs Reizer & Johannes F. Schmieder (2017): Reference-dependent job search: evidence from Hungary. In: The Quarterly Journal of Economics, Jg. 132, H. 4, S. 1969-2018. DOI:10.1093/qje/qjx015

Abstract

"We propose a model of job search with reference-dependent preferences, with loss aversion relative to recent income (the reference point). In this model, newly unemployed individuals search hard since consumption is below their reference point. Over time, though, they get used to lower income and thus reduce their search effort. In anticipation of a benefit cut, their search effort rises again, then declines once they get accustomed to the lower postcut benefit level. The model fits the typical pattern of exit from unemployment, even with no unobserved heterogeneity. To distinguish between this and other models, we use a unique reform in the unemployment insurance (UI) benefit path. In 2005, Hungary switched from a single-step UI system to a two-step system, with overall generosity unchanged. The system generated increased hazard rates in anticipation of, and especially following, benefit cuts in ways the standard model has a hard time explaining. We estimate a model with optimal consumption, endogenous search effort, and unobserved heterogeneity. The reference-dependent model fits the hazard rates substantially better than plausible versions of the standard model, including habit formation. Our estimates indicate a slow-adjusting reference point and substantial impatience, likely reflecting present-bias." (Author's abstract, IAB-Doku) ((en))

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Eriksson, Stefan & Karolina Stadin (2017): What are the determinants of hiring? The role of demand and supply factors. In: Applied Economics, Jg. 49, H. 50, S. 5144-5165. DOI:10.1080/00036846.2017.1302058

Abstract

"In this article, we study the importance of product market demand and search frictions for hiring. We use a search-matching model with imperfect competition in the product market to derive an equation for total hiring in a local labour market, and estimate it on Swedish panel data. If product markets are imperfectly competitive, product demand shocks should have a direct effect on employment for given levels of prices and wages. Our main finding is that product demand has such a direct effect on hiring. This highlights the importance of taking imperfect competition in the product market into account in studies of employment dynamics and hiring. We also find that, for given levels of prices, wages, and product demand, the number of unemployed workers in a local labour market has a positive effect on hiring, suggesting that search frictions matter. Quantitatively, product demand shocks seem to be more important for understanding the variation in hiring than shocks to the number of unemployed workers." (Author's abstract, IAB-Doku) ((en))

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Garda, Paula (2017): Enhancing employability and skills to meet labour market needs in Italy. (OECD Economics Department working papers 1401), Paris, 40 S. DOI:10.1787/260deeb4-en

Abstract

"The various deficiencies of the labour market and the educational system have resulted in high unemployment, low labour force participation, low skills levels and high skill mismatch. Job creation is key to tackling the high unemployment rates, especially for the young and long-term unemployed. Promoting jobs without paying attention to their quality and to the skills required by employers may have adverse impact on welfare and productivity. The Jobs Act and Good School ('Buona Scuola'), two major reforms of the labour market and the educational system, are good steps in the right direction. The Jobs Act and the temporary social security contribution exemptions have contributed to raise employment. By strengthening job search and training policies, the Jobs Act can enhance jobseekers' employability. Increasing the effectiveness of public employment services, given the low spending level, remains a challenge. The Good School reform has the potential to improve school outcomes and provide more aligned skills to the job market. Increasing employability by upgrading skills that match employer needs remains a priority. Business involvement in education and training institutions at all educational levels will be paramount to ensure the provision of relevant skills, the availability of traineeship and apprenticeship places and provide on-the-job training. The adaptability of skills could be encouraged by lowering barriers to labour mobility and boosting work-based learning." (Author's abstract, IAB-Doku) ((en))

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Gottfries, Nils & Karolina Stadin (2017): The matching process. Search or mismatch? (CESifo working paper 6300), München, 51 S.

Abstract

"We examine the matching process using monthly panel data for local labour markets in Sweden. We find that an increase in the number of vacancies has a weak effect on the number of unemployed workers being hired: unemployed workers appear to be unable to compete for many available jobs. Vacancies are filled quickly and there is no (or only weak) evidence that high unemployment makes it easier to fill vacancies; hiring appears to be determined by labour demand while frictions and labour supply play small roles. These results indicate persistent mismatch in the labour market." (Author's abstract, IAB-Doku) ((en))

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Hoffman, Mitchell (2017): The value of hiring through employee referrals in developed countries. (IZA world of labor 369), Bonn, 8 S. DOI:10.15185/izawol.369

Abstract

"Companies frequently hire new employees based on referrals from existing employees, who often recommend friends or family members. There are numerous possible benefits from this, such as lower turnover, possibly higher productivity, lower recruiting costs, and beneficial commonalities related to shared employee values. On the other hand, hiring through employee referrals may disadvantage under-represented minorities, entail greater firm costs in the form of higher wages, lead to undesirable commonalities, and reflect nepotism. A growing body of research explores these considerations." (Author's abstract, IAB-Doku) ((en))

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Leung, Ming D. (2017): Learning to hire? Hiring as a dynamic experiential learning process in an online market for contract labor. (IRLE working paper 2017-103), Berkeley, CA, 49 S.

Abstract

"We know a job applicant's social category affects an employer's likelihood of hiring them, but we do not know whether, or how, employers update their beliefs regarding members of these social categories. I examine how prior negative and positive hiring experiences of employees from particular countries affects an employer's subsequent likelihood of hiring applicants from those countries. Analyses of over 26 million applications, from freelancers worldwide, for over 2.2 million jobs on an online labor market demonstrate that employers react more strongly to negative hiring experiences than positive ones. Employers are 14% less likely (versus 8% more likely) to hire freelancers from a country following a prior negative (versus positive) experience. The similarity of the prior job moderates this effect. Prior negative experiences with similar jobs (versus dissimilar jobs) lead employers to be 92% less likely (versus 7% less likely) to hire from that country. Conversely, positive experiences with similar jobs (versus dissimilar jobs) lead employers to be 23% more likely (versus 3% more likely) to subsequently hire from that country. The consequences for switching countries, following negative experiences, are analyzed and wage differences, made to compensate for employer reactions, are calculated. Contributions to the hiring discrimination, impression formation, and gig-economy literatures are discussed." (Author's abstract, IAB-Doku) ((en))

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Lise, Jeremy & Jean-Marc Robin (2017): The macrodynamics of sorting between workers and firms. In: The American economic review, Jg. 107, H. 4, S. 1104-1135. DOI:10.1257/aer.20131118

Abstract

"We develop an equilibrium model of on-the-job search with ex ante heterogeneous workers and firms, aggregate uncertainty, and vacancy creation. The model produces rich dynamics in which the distributions of unemployed workers, vacancies, and worker-firm matches evolve stochastically over time. We prove that the surplus function, which fully characterizes the match value and the mobility decision of workers, does not depend on these distributions. This result means the model is tractable and can be estimated. We illustrate the quantitative implications of the model by fitting to US aggregate labor market data from 1951-2012. The model has rich implications for the cyclical dynamics of the distribution of skills of the unemployed, the distribution of types of vacancies posted, and sorting between heterogeneous workers and firms." (Author's abstract, IAB-Doku) ((en))

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Muller, Paul, Bas van der Klaauw & Arjan Heyma (2017): Comparing econometric methods to empirically evaluate job-search assistance. (IZA discussion paper 10531), Bonn, 56 S.

Abstract

"We test whether different empirical methods give different results when evaluating job search assistance programs. Budgetary problems at the Dutch unemployment insurance (UI) administration in March 2010, caused a sharp drop in the availability of these programs. Using administrative data provided by the UI administration, we evaluate the effect of the program using (1) the policy discontinuity as a quasi-experiment, (2) conventional matching methods, and (3) the timing-of-events model. All three methods use the same data to consider the same program in the same setting, and also yield similar results. The program reduces job finding during the first six months after enrollment. At longer durations, the quasi-experimental estimates are not significantly different from zero, while the nonexperimental methods show a small negative effect." (Author's abstract, IAB-Doku) ((en))

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Nekoei, Arash & Andrea Weber (2017): Does extending unemployment benefits improve job quality? In: The American economic review, Jg. 107, H. 2, S. 527-561. DOI:10.1257/aer.20150528

Abstract

"Contrary to standard search models predictions, past studies have not found a positive effect of unemployment insurance (UI) on reemployment wages. We estimate a positive UI wage effect exploiting an age-based regression discontinuity design in Austria. A search model incorporating duration dependence predicts two countervailing forces: UI induces workers to seek higher-wage jobs, but reduces wages by lengthening unemployment. Matching-function heterogeneity plausibly generates a negative relationship between the UI unemployment-duration and wage effects, which holds empirically in our sample and across studies, reconciling disparate wage-effect estimates. Empirically, UI raises wages by improving reemployment firm quality and attenuating wage drops." (Author's abstract, IAB-Doku) ((en))

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Sellami, Sana, Dieter Verhaest, Walter Nonneman & Walter Van Trier (2017): The impact of educational mismatches on wages. The influence of measurement error and unobserved heterogeneity. In: The B.E. Journal of Economic Analysis and Policy, Jg. 17, H. 1, S. 1-20. DOI:10.1515/bejeap-2016-0055

Abstract

"We investigate the differential impact of alternative combinations of horizontal and vertical educational mismatches on wages. By using panel data for Belgian graduates, we consider the role of unobserved worker heterogeneity. Random measurement error in both types of mismatches is accounted for by adopting instrumental variable techniques. We consistently find that overeducated individuals without field of study mismatch earn less than adequately educated workers with a similar educational background. However, for individuals who are working outside their field of study, such a wage penalty is not always observed once accounting for unobserved heterogeneity and random measurement error. In some cases, field of study mismatch even seems to be financially beneficial to the worker. These findings contribute to our understanding regarding the extent to which educational mismatches are truly problematic. The results call for policies that focus primarily on combatting vertical mismatches." (Author's abstract, © De Gruyter) ((en))

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Smith, Sandra Susan & Kara Alexis Young (2017): Want, need, fit. The cultural logics of job-matching assistance. In: Work and occupations, Jg. 44, H. 2, S. 171-209. DOI:10.1177/0730888416676513

Abstract

"Drawing from a unique dataset based on 146 in-depth, semistructured interviews with a nonrandom sample of ethnoracially and class diverse workers at one large public sector employer, the authors link job contacts' patterns of assistance to three distinct cultural logics of job-matching assistance -- defensive individualism, particularism, and matchmaking -- which differed along three dimensions: (a) the primary criteria upon which help was contingent, (b) the perceived risk faced, and (c) the screening practices contacts used. These findings contribute to a small but growing body of research highlighting the cultural logics that inform where, how much, and to whom job information and influence flows." (Author's abstract, IAB-Doku) ((en))

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Weaver, Andrew & Paul Osterman (2017): Skill demands and mismatch in U.S. manufacturing. In: ILR review, Jg. 70, H. 2, S. 275-307. DOI:10.1177/0019793916660067

Abstract

"Recent economic events have sparked debates over the degree of structural mismatch in the U.S. economy. One of the most frequent claims is that workers lack the skills that employers demand. The existing literature, however, analyzes this potential mismatch at a high level of aggregation with abstract indices and noisy proxies that obscure the underlying mechanisms. The authors address these issues by presenting and analyzing results from a survey of U.S. manufacturing establishments. The survey is the first, to their knowledge, to directly measure concrete employer skill demands and hiring experiences in a nationally representative survey at the industry level. The findings indicate that demand for higher-level skills is generally modest, and that three-quarters of manufacturing establishments do not show signs of hiring difficulties. Among the remainder, demands for higher-level math and reading skills are significant predictors of long-term vacancies, but demands for computer skills and other critical-thinking/problem-solving skills are not. Of particular interest, high-tech plants do not experience greater levels of hiring challenges. When the authors examine the potential mechanisms that could contribute to hiring difficulties, they find that neither external regional supply conditions nor internal firm practices are predictive of hiring problems. Rather, the data show that establishments that are members of clusters or that demand highly specialized skills have the greatest probability of incurring long-term vacancies. The authors interpret these results as a sign that it is important to think about factors that complicate the interaction of supply and demand -- such as disaggregation and communication/coordination failures -- rather than simply focusing on inadequate labor supply." (Author's abstract, IAB-Doku) ((en))

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Weinstein, Russell (2017): Employer screening costs, recruiting strategies, and labor market outcomes. An equilibrium analysis of on-campus recruiting. (IZA discussion paper 10912), Bonn, 80 S.

Abstract

"This paper analyzes labor market matching in the presence of search and informational frictions, by studying employer recruiting on college campuses. Based on employer and university interviews, I develop a model describing how firms choose target campuses given relevant frictions. The model predicts that with screening costs, the decision to recruit and the wage are driven by the selectivity of surrounding universities, in addition to the university's selectivity. The prediction has strong support using data from 39 finance and consulting firms and the Baccalaureate and Beyond. Structural estimation of an equilibrium model directly quantifies the impact of reducing screening costs." (Author's abstract, IAB-Doku) ((en))

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Wilson, Shaun & Markus Hadler (2017): Downward flexibility: Who is willing to take an inferior job? In: European journal of industrial relations, Jg. 23, H. 2, S. 187-204. DOI:10.1177/0959680116659816

Abstract

"Most workers look forward to better jobs across their careers, but in an age of rising inequality and insecurity at work, some are willing to accept an inferior job in order to avoid joblessness. We use the Work Orientations III survey from the 2005 International Social Survey Programme to explore such 'downward flexibility' and develop several regression models specified for 19 OECD countries to test hypotheses and explore macro- and individual-level variations. Workers in liberal 'labour market regimes' are more tolerant of downward adaptations, in line with evidence that these regimes produce strongly institutionalized norms of flexibility. Tolerance of a worse job is also higher among those with weak labour market positions (low-income respondents, women and young people). Further macro-level analysis suggests that the 'model' country with the most downwardly flexible workers would be rich and unequal, with weak unions and low levels of social protection and industrial rights." (Author's abstract, IAB-Doku) ((en))

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Brown, Meta, Elizabeth Setren & Giorgio Topa (2016): Do informal referrals lead to better matches? Evidence from a firm's employee referral system. In: Journal of labor economics, Jg. 34, H. 1/Pt. 1, S. 161-209.

Abstract

"Using a new firm-level data set that includes explicit information on referrals by current employees, we investigate the hiring process and the relationships among referrals, match quality, wage trajectories, and turnover for a single US corporation and test various predictions of theoretical models of labor market referrals. We find that referred candidates are more likely to be hired; experience an initial wage advantage, which dissipates over time; and have longer tenure in the firm. Further, the variances of the referred and nonreferred wage distributions converge over time. The observed referral effects appear to be stronger at lower skill levels. The data also permit analysis of the role of referrer-referee pair characteristics." (Author's abstract, IAB-Doku) ((en))

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Burda, Michael C. & Mark Weder (2016): Payroll taxes, social insurance, and business cycles. In: Journal of the European Economic Association, Jg. 14, H. 2, S. 438-467. DOI:10.1111/jeea.12145

Abstract

"Payroll taxes represent a major distortionary influence of governments on labor markets. This paper examines the role of time-varying payroll taxes and the social safety net for cyclical fluctuations in a nonmonetary economy with labor market frictions and unemployment insurance, when the latter is only imperfectly related to search effort. A balanced social insurance budget induces countercyclical payroll taxation, renders gross wages more rigid over the cycle and strengthens the model's endogenous propagation mechanism. For conventional calibrations, the model generates a negatively sloped Beveridge curve and countercyclical unemployment as well as substantial volatility and persistence of vacancies and unemployment." (Author's abstract, IAB-Doku) ((en))