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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, Michele, 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, 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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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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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))

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Dinlersoz, Emin M., Henry R. Hyatt & Hubert P. Janicki (2016): Who works for whom? Worker sorting in a model of entrepreneurship with heterogeneous labor markets. (IZA discussion paper 9693), Bonn, 47 S.

Abstract

"Young and small firms are typically matched with younger and nonemployed individuals, and they provide these workers with lower earnings compared to other firms. To explore the mechanisms behind these facts, a dynamic model of entrepreneurship is introduced, where individuals can choose not to work, become entrepreneurs, or work in one of the two sectors: corporate or entrepreneurial. The differences in production technology, financial constraints, and labor market frictions lead to sector-specific wages and worker sorting across the two sectors. Individuals with lower assets tend to accept lower-paying jobs in the entrepreneurial sector, an implication that finds support in the data. The effect on the entrepreneurial sector of changes in key parameters is also studied to explore some channels that may have contributed to the decline of entrepreneurship in the United States." (Author's abstract, IAB-Doku) ((en))

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Gandini, Alessandro, Ivana Pais & Davide Beraldo (2016): Reputation and trust on online labour markets. The reputation economy of Elance. In: Work Organisation, Labour and Globalisation, Jg. 10, H. 1, S. 27-43. DOI:10.13169/workorgalaboglob.10.1.0027

Abstract

"This article examines profile data about 9,593 freelancers from 121 countries active in the Design and Multimedia section of Elance, a major online labour market existing up until 2015. Using statistical analysis, the article evidences that the earnings a contractor obtains from working through Elance positively correlates with higher reputation scores and suggests that the conception of trust among actors operating on an online labour market resembles that which characterises e-commerce platforms like eBay or Amazon, where trust relations among 'strangers' are guaranteed by an algorithmic-based third party that translates feedbacks and rankings into a numerical reputation proxy." (Author's abstract, © Pluto Journals Ltd.) ((en))

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Gautier, Pieter, Jose L. Moraga-Gonzalez & Ronald Wolthoff (2016): Search costs and efficiency. Do unemployed workers search enough? In: European Economic Review, Jg. 84, H. May, S. 123-139. DOI:10.1016/j.euroecorev.2015.04.001

Abstract

"Many labor market policies affect the marginal benefits and costs of job search. The impact and desirability of such policies depend on the distribution of search costs. In this paper, we provide an equilibrium framework for identifying the distribution of search costs and we apply it to the Dutch labor market. In our model, the wage distribution, job search intensities, and firm entry are simultaneously determined in market equilibrium. Given the distribution of search intensities (which we directly observe), we calibrate the search cost distribution and the flow value of non-market time; these values are then used to derive the socially optimal firm entry rates and distribution of job search intensities. From a social point of view, some unemployed workers search too little due to a hold-up problem, while other unemployed workers search too much due to coordination frictions and rent-seeking behavior. Our results indicate that jointly increasing unemployment benefits and the sanctions for unemployed workers who do not search at all can be welfare-improving." (Author's abstract, IAB-Doku) ((en))

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Gavazza, Alessandro, Simon Mongey & Giovanni L. Violante (2016): Aggregate recruiting intensity. (CEP discussion paper 1449), London, 59 S.

Abstract

"We develop a model of firm dynamics with random search in the labor market where hiring firms exert recruiting effort by spending resources to fill vacancies faster. Consistent with micro evidence, in the model fast-growing firms invest more in recruiting activities and achieve higher job-filling rates. In equilibrium, individual decisions of hiring firms aggregate into an index of economy-wide recruiting intensity. We use the model to study how aggregate shocks transmit to recruiting intensity, and whether this channel can account for the dynamics of aggregate matching efficiency around the Great Recession. Productivity and financial shocks lead to sizable pro-cyclical fluctuations in matching efficiency through recruiting effort. Quantitatively, the main mechanism is that firms attain their employment targets by adjusting their recruiting effort as labor market tightness varies. Shifts in sectoral composition can have a sizable impact on aggregate recruiting intensity. Fluctuations in new-firm entry, instead, have a negligible effect despite their contribution to aggregate job and vacancy creations." (Author's abstract, IAB-Doku) ((en))

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Kampelmann, Stephan, Benoît Mahy, François Rycx & Guillaume Vermeylen (2016): Who is your perfect match? Educational norms, educational mismatch and firm profitability. (IZA discussion paper 10399), Bonn, 35 S.

Abstract

"We provide first evidence regarding the direct effect of educational norms and educational mismatch on the bottom line of firms across work environments. To do so, we use rich Belgian linked employer-employee panel data, rely on the methodological approach pioneered by Hellerstein et al. (1999), and estimate dynamic panel data models at the firm level. Our findings show an 'inverted L' profitability profile: undereducation is associated with lower profits, whereas higher levels of normal and overeducation are correlated with positive economic rents of roughly the same magnitude. The size of these effects is amplified in firms experiencing economic uncertainty or operating in high-tech sectors." (Author's abstract, IAB-Doku) ((en))

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Kawata, Keisuke, Kentaro Nakajima & Yasuhiro Sato (2016): Multi-region job search with moving costs. In: Regional science and urban economics, Jg. 61, H. November, S. 114-129. DOI:10.1016/j.regsciurbeco.2016.10.002

Abstract

"We develop a competitive search model involving multiple regions, geographically mobile workers, and moving costs. Equilibrium mobility patterns are analyzed and characterized, and the results indicate that shocks to a particular region, such as a productivity shock, can propagate to other regions through workers' mobility. Moreover, equilibrium mobility patterns are inefficient due to the existence of moving costs." (Author's abstract, IAB-Doku) ((en))

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Lazear, Edward P., Kathryn L. Shaw & Christopher T. Stanton (2016): Who gets hired? The importance of finding an open slot. (NBER working paper 22202), Cambrige, Mass., 46 S. DOI:10.3386/w22202

Abstract

"A model of hiring into posted job slots suggests hiring is based on comparative advantage: being hired depends not only on one's own skill but also on the skills of other applicants. The model has numerous implications. First, bumping of applicants occurs when one job-seeker is slotted into a lower paying job by another applicant who is more skilled. Second, less able workers are more likely to be unemployed because they are bumped. Third, vacancies are higher for harder to fill skilled jobs. Fourth, some workers are over-qualified for their jobs whereas others are under-qualified. These implications are borne out using four different data sets." (Author's abstract, IAB-Doku) ((en))

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Le Barbanchon, Thomas (2016): The effect of the potential duration of unemployment benefits on unemployment exits to work and match quality in France. In: Labour economics, Jg. 42, H. October, S. 16-29. DOI:10.1016/j.labeco.2016.06.003

Abstract

"Recent empirical literature finds very limited average effects of generous unemployment benefits on match quality. This study examines those effects in a setting where they could be large. We focus on workers with low employability and evaluate the impact of a large increase in potential benefit duration from 7 to 15 months. Our regression discontinuity design does not elicit significant short-term or medium-term effects on either employment duration or wages, whereas we find large positive effects on unemployment and non-employment duration." (Author's abstract, © 2017 Elsevier) ((en))

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Lichter, Andreas (2016): Essays on the economics of the labor market. Köln, 217 S.

Abstract

"The present dissertation aims at contributing to the understanding of central labor market mechanisms by analyzing open questions on the determinants of firms' labor demand, unemployed individuals' job search behavior and the state's role in shaping peoples' trust and, thereby, affecting labor market outcomes and economic performance. (Author's abstract, IAB-Doku) ((en))

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Marinescu, Ioana & Roland Rathelot (2016): Mismatch unemployment and the geography of job search. (NBER working paper 22672), Cambrige, Mass., 69 S. DOI:10.3386/w22672

Abstract

"Could we significantly reduce U.S. 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% less likely to apply to a job 10 miles 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%. 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 (2016): Did the job ladder fail after the Great Recession? In: Journal of labor economics, Jg. 34, H. 1/Pt. 2, S. S55-S93.

Abstract

"We study employment reallocation across employers through the lens of a dynamic job ladder model. Workers always agree on a ranking of employers at all points in time and search for better jobs both off and on the job. A parsimonious version of the model fits well the time series of gross worker flows by employer size from newly available US data from the Job Openings and Labor Turnover Survey. Focusing on the US experience in and around the Great Recession, our evidence indicates that the job ladder stopped working then and has not fully resumed yet." (Author's abstract, IAB-Doku) ((en))

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Oslund, Charlotte (2016): Which industries need workers? Exploring differences in labor market activity. In: Monthly Labor Review, Jg. 139, H. January, S. 1-22.

Abstract

"Using data from the Job Openings and Labor Turnover Survey, this article takes a unique, simultaneous look at job openings, hires, and separations for individual industries and then categorizes industries as having high or low job openings and high or low hires. Studying the data items in relation to each other helps point out the differences among industries: some have high turnover, some have low turnover, some easily find the workers they need and hence have few job openings at the end of the month, and some need more workers than they can find. The author also includes fill rates and churn rates by industry and looks briefly at earnings by industry. The analysis of labor turnover patterns by industry may prove useful to jobseekers and career changers as well as employers." (Author's abstract, IAB-Doku) ((en))

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Pallais, Amanda & Emily Glassberg Sands (2016): Why the referential treatment. Evidence from field experiments on referrals. In: Journal of Political Economy, Jg. 124, H. 6, S. 1793-1828. DOI:10.1086/688850

Abstract

"Referred workers are more likely than nonreferred workers to be hired, all else equal. In three field experiments in an online labor market, we examine why. We find that referrals contain positive information about worker performance and persistence that is not contained in workers' observable characteristics. We also find that referrals perform particularly well when working directly with their referrers. However, we do not find evidence that referrals exert more effort because they believe their performance will affect their relationship with their referrer or their referrer's position at the firm." (Author's abstract, IAB-Doku) ((en))

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Sedláček, Petr (2016): The aggregate matching function and job search from employment and out of the labor force. In: Review of Economic Dynamics, Jg. 21, H. July, S. 16-28. DOI:10.1016/j.red.2016.03.001

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Arni, Patrick & Amelie Schiprowski (2015): The effects of binding and non-binding job search requirements. (IZA discussion paper 8951), Bonn, 52 S.

Abstract

"Job search requirements constrain the effort choice of unemployment insurance recipients by enforcing a minimum number of monthly applications. This paper is the first to assess how individual search effort, job finding and job stability react to this constraint. Standard job search theory predicts that requirements affect each job seeker relative to her unconstrained effort choice. Therefore, the behavioral treatment intensity of interest is the incremental effort necessary to comply with the requirement. Using novel Swiss register data, we measure this intensity as the difference between the individual requirement threshold and the search effort provided just before requirement imposition. Our econometric approach exploits that - conditional on a broad set of choice fixed effects - the match between the job seeker's unconstrained effort choice and the caseworker's requirement setting behavior is arbitrary. Therefore, it provides exogenous variation in the treatment assignment. We find that binding search requirements that exceed the job seeker's unconstrained effort choice, increase job finding in a substantial way. These effects are highly heterogeneous with respect to the job seeker's characteristics. They come at the cost of increased non-compliance and sanction imposition rates. Moreover, binding requirements have striking negative effects on job stability. Finally, we find that non-binding requirements can also affect search outcomes. This suggests that requirements can operate as signals, thereby generating behavioral effects that are not predicted by standard job search theory." (Author's abstract, IAB-Doku) ((en))

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Barbulescu, Roxana (2015): The strength of many kinds of ties. Unpacking the role of social contacts across stages of the job. In: Organization Science, Jg. 26, H. 4, S. 1040-1058. DOI:10.1287/orsc.2015.0978

Abstract

"The topic of job mobility has received increasing attention in recent years. Yet, surprising in light of the wealth of research on social networks and job attainment, we do not have a unified model of the impact of different kinds of social contacts on job search success. In this paper I show that contacts are differently beneficial for job seekers depending on the stage of the job search process that job seekers are engaged in. Specifically, three stages of the job search process can be distinguished in which social contacts fulfill different roles for the job seekers: deciding the types of jobs for which to apply, submitting job applications, and preparing for interviews. I propose that contacts who are spread across different occupations are conducive to applying to more types of jobs, yet it is contacts who are more focused across occupations that are beneficial for being invited to more interviews - relative to the number of job types applied for - and for converting the interviews into offers. In addition, contacts with lower relationship depth with the job seeker are more helpful for getting invited to interviews, whereas contacts who have more frequent interactions with the job seeker are more helpful for converting interviews into offers. Analyses using a unique longitudinal data set on the job searches of 226 participants in an MBA program offer robust evidence in support of the hypotheses. The results suggest that external mobility is best enabled when job seekers engage with - and learn from - different kinds of contacts across stages of the job search process." (Author's abstract, IAB-Doku) ((en))

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Barnichon, Regis & Andrew Figura (2015): Labor market heterogeneity and the aggregate matching function. In: American Economic Journal. Macroeconomics, Jg. 7, H. 4, S. 222-249. DOI:10.1257/mac.20140116

Abstract

"We estimate an aggregate matching function and find that the regression residual, which captures movements in matching efficiency, displays procyclical fluctuations and a dramatic decline after 2007. Using a matching function framework that explicitly takes into account worker heterogeneity as well as market segmentation, we show that matching efficiency movements can be the result of variations in the degree of heterogeneity in the labor market. Matching efficiency declines substantially when, as in the Great Recession, the average characteristics of the unemployed deteriorate substantially, or when dispersion in labor market conditions - the extent to which some labor markets fare worse than others - increases markedly." (Author's abstract, IAB-Doku) ((en))

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Belot, Michele, Philipp Kircher & Paul Muller (2015): Providing advice to job seekers at low cost. An experimental study on on-line advice. (CESifo working paper 5641), München, 69 S.

Abstract

"Helping job seekers to identify suitable jobs is a key challenge for policy makers. We develop and evaluate experimentally a novel tool that provides tailored advice at low cost and thereby redesigns the process through which job seekers search for jobs. We invited 300 job seekers to our computer facilities for 12 consecutive weekly sessions. They searched for real jobs using our web interface. After 3 weeks, we introduced a manipulation of the interface for half of the sample: instead of relying on their own search criteria, we displayed relevant other occupations to them and the jobs that were available in these occupations. These suggestions were based on background information and readily available labor market data. We recorded search behavior on our site but also surveyed participants every week on their other search activities, applications and job interviews. We find that these suggestions broaden the set of jobs considered by the average participant. More importantly, we find that they are invited to significantly more job interviews. These effects are predominantly driven by job seekers who searched relatively narrowly initially and who have been unemployed for a few months." (Author's abstract, IAB-Doku) ((en))

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Benson, Alan (2015): A theory of dual job search and sex-based occupational clustering. In: Industrial relations, Jg. 54, H. 3, S. 367-400. DOI:10.1111/irel.12095

Abstract

"This paper theorizes and provides evidence for the segregation of men into clustered occupations and women into dispersed occupations in advance of marriage and in anticipation of future colocation problems. Using the Decennial Census, and controlling for occupational characteristics, I find evidence of this general pattern of segregation, and also find that the minority of the highly educated men and women who depart from this equilibrium experience delayed marriage, higher divorce, and lower earnings. Results are consistent with the theory that marriage and mobility expectations foment a self-fulfilling pattern of occupational segregation with individual departures deterred by earnings and marriage penalties." (Author's abstract, IAB-Doku) ((en))

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Burks, Stephen V., Bo Cowgill, Mitchell Hoffman & Michael Housman (2015): The value of hiring through employee referrals. In: The Quarterly Journal of Economics, Jg. 130, H. 2, S. 805-839. DOI:10.1093/qje/qjv010

Abstract

"Using personnel data from nine large firms in three industries (call centers, trucking, and high-tech), we empirically assess the benefit to firms of hiring through employee referrals. Compared to nonreferred applicants, referred applicants are more likely to be hired and more likely to accept offers, even though referrals and nonreferrals have similar skill characteristics. Referred workers tend to have similar productivity compared to nonreferred workers on most measures, but referred workers have lower accident rates in trucking and produce more patents in high-tech. Referred workers are substantially less likely to quit and earn slightly higher wages than nonreferred workers. In call centers and trucking, the two industries for which we can calculate worker-level profits, referred workers yield substantially higher profits per worker than nonreferred workers. These profit differences are driven by lower turnover and lower recruiting costs for referrals." (Author's abstract, IAB-Doku) ((en))

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Cappellari, Lorenzo & Konstantinos Tatsiramos (2015): With a little help from my friends? Quality of social networks, job finding and job match quality. In: European Economic Review, Jg. 78, H. August, S. 55-75. DOI:10.1016/j.euroecorev.2015.04.002

Abstract

"This paper studies the effect of network quality on job finding and job match quality using longitudinal data and a direct measure of network quality, which is based on the employment of friendship ties. Various identification strategies provide robust evidence that a higher number of employed contacts increases the job finding rate. Network quality also increases wages for high-skilled workers forming networks with non-familial contacts. Instead, for low-skilled workers, more employed familial contacts lead to a negative but not significant effect on wages. These findings reconcile previous mixed evidence of network effects on wages, indicating heterogeneity by skill level and relationship type." (Author's abstract, IAB-Doku) ((en))

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Cardoso, Ana Rute, Annalisa Loviglio & Lavinia Piemontese (2015): Information frictions and labor market outcomes. (IZA discussion paper 9070), Bonn, 43 S.

Abstract

"We analyze the impact of information frictions on workers' wages, contributing to the literature that tested search theory, which has so far focused on labor market frictions in general and not specifically on information asymmetries. Using data for 16 countries from the European Social Survey 2008, we find a sizeable gap between workers' perceptions of the unemployment rate and the actual unemployment rate in the country, which is a meaningful indicator of their misperception of labor market tightness. To handle the interval nature of our outcome of interest, the earnings variable, we estimate interval regressions, as well as ordered probit models. We follow a threefold strategy to tackle potential endogeneity problems, as the model includes: controls for the worker's ability; country-specific fixed effects; the unemployment rate in the region of residence, which might be the benchmark respondents have in mind when reporting their perception of the national unemployment rate and which is known to influence regional wages. Results show that when subjective perceptions overstate the unemployment rate in the country, a one percentage point gap between the perceived and the actual unemployment rate reduces individual wages by 0.4 to 0.7 percent. We discuss a potential mechanism generating this result. A pessimistic view of the labor market leads to concern over own future employment prospects and is thus likely to lower reservation wages; a too optimistic view, in turn, could raise reservation wages, but it would render job finding more difficult." (Author's abstract, IAB-Doku) ((en))

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Carrillo-Tudela, Carlos, Michael Graber & Klaus Wälde (2015): Unemployment and vacancy dynamics with imperfect financial markets. (IZA discussion paper 9525), Bonn, 28 S.

Abstract

"This paper proposes a simple general equilibrium model with labour market frictions and an imperfect financial market. The aim of the paper is to analyse the transitional dynamics of unemployment and vacancies when financial constraints are in place. We model the financial sector as a monopolistically competitive banking sector that intermediates financial capital between firms. This structure implies a per period financial resource constraint which has a closed form solution and describes the transition path of unemployment and vacancies to their steady state values. We show that the transition path crucially depends on the degree of wage flexibility. When wages are bargained sequentially the transition path is always downward sloping. This implies unemployment and vacancies adjust in opposite directions as observed in the data. When calibrating the model to the Great Recession and its aftermath we find that the lack of an improvement in the financial sector's effectiveness to intermediate resources played a crucial role in the slow recovery of the labour market." (Author's abstract, IAB-Doku) ((en))

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Chamberlain, Andrew (2015): Why is hiring taking longer? New insights from Glassdoor data. (Glassdoor. Research report), Mill Valley, CA, 20 S.

Abstract

"The time required for hiring processes has grown dramatically in recent years, both in the U.S. and internationally. What factors are driving this trend? Which job seekers face the longest delays and why?
This study presents a statistical analysis of trends in hiring times based on a unique data source: reviews of job interview experiences from Glassdoor. Based on a sample of 344,250 interview reviews spanning six countries, we examine a variety of factors affecting the length of interview processes: industry factors, company factors, country factors, differences in job titles, and even the changing mix of job interview 'screening' methods used by employers." (Author's abstract, IAB-Doku) ((en))

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Chen, Been-Lon & Chih-Fang Lai (2015): Effects of labor taxes and unemployment compensation on labor supply in a search model with an endogenous labor force. In: Journal of macroeconomics, Jg. 43, H. March, S. 300-317. DOI:10.1016/j.jmacro.2014.12.005

Abstract

"Labor taxes and unemployment compensation were blamed for causing relative declines in labor supply in the EU to the US in the past decades. We propose a model with an endogenous labor force and compare with the model with an exogenous labor force. Because of discouraging the labor force, labor taxes decrease employment in our model less than the model with an exogenous labor force, have ambiguous effects on hours, and decrease less labor supply in our model. Due to boosting the labor force, unemployment compensation increases employment in our model and decreases in the model with an exogenous labor force, but with opposite effects on hours, labor supply is ambiguous in both models. To understand the net effect on labor supply, we feed in the data of increases in labor taxes and unemployment compensation in the EU relative to the US. We find that the model with an exogenous labor force explain excessively of decreases in employment and labor supply, with increases in hours against the data. In contrast, our model explains reasonable decreases in labor supply, with sensible decreases in employment and in hours. Thus, with an endogenous labor force, our model explains relative declines in labor supply better than the model with an exogenous labor force." (Author's abstract, IAB-Doku) ((en))

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De Coen, An, Anneleen Forrier, Nele De Cuyper & Luc Sels (2015): Job seekers' search intensity and wage flexibility. Does age matter? In: Ageing and Society, Jg. 35, H. 2, S. 346-366. DOI:10.1017/S0144686X13000731

Abstract

"Although studies on job search implicitly presume that relationships between antecedents and indicators of job search are similar for job seekers from different ages, few studies have tested this assumption even though lifespan theories state that individual motives and behaviour significantly change as people age. From this theoretical perspective, we examine how age moderates the relationships between re-employment efficacy, employment commitment and financial hardship, on the one hand, and job search intensity and wage flexibility, on the other hand. Path analysis on a sample of 240 Belgian job seekers who were at the start of an outplacement programme showed that re-employment efficacy relates positively to job search intensity and wage flexibility for older job seekers, while we find negative relationships for younger job seekers. For employment commitment and financial hardship, we do not find any interaction effects with age. Employment commitment relates positively to search intensity, whereas financial hardship relates negatively to wage flexibility, irrespective of age. We discuss implications for theory, practice and future research." (Author's abstract, IAB-Doku) ((en))

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Eriksson, Stefan & Karolina Stadin (2015): What are the determinants of hiring? The role of demand and supply factors. (Working papers / Institute for Evaluation of Labour Market and Education Policy 2015,14), Uppsala, 38 S.

Abstract

"In this paper, we study the relative importance of demand and supply factors 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 labor market and estimate it on Swedish panel data. If product markets are imperfectly competitive, product demand shocks should have a direct effect on employment. Our main finding is that product demand is important for 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 the number of unemployed workers has a positive effect on hiring, confirming the importance of search frictions. Hence, both demand and supply factors seem to matter for hiring." (Author's abstract, IAB-Doku) ((en))

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Fort, Isabelle, Catherine Pacaud & Pierre-Yves Gilles (2015): Job search intention, theory of planned behavior, personality and job search experience. In: International Journal for Educational and Vocational Guidance, Jg. 15, H. 1, S. 57-74. DOI:10.1007/s10775-014-9281-3

Abstract

"Diese Studie beabsichtigte nicht nur die Beziehungen zwischen Variablen der Theorie des geplanten Verhaltens und der Absicht zur Jobsuche innerhalb einer französischen Stichprobe zu bestätigen, sondern auch moderierende Effekte für diese Beziehungen durch Erfahrungen bezüglich der Jobsuche und durch zwei Persönlichkeitsdimensionen (Extraversion und Gewissenhaftigkeit) zu überprüfen. 154 Teilnehmer beurteilten die relevanten Konzepte auf einer Reihe von mehreren Skalen. Die Ergebnisse zeigten, dass Variablen der Theorie des geplanten Verhaltens signifikant im Zusammenhang mit der Absicht zur Jobsuche stehen, und dass Extraversion sowie Gewissenhaftigkeit den Zusammenhang zwischen Einstellungen und der Absicht zur Jobsuche moderieren. Die Ergebnisse werden in Bezug zu bisheriger Forschung und praktischen Implikationen diskutiert." (Autorenreferat, IAB-Doku)

Zitatform

Gautier, Pieter A. & Coen N. Teulings (2015): Sorting and the output loss due to search frictions. In: Journal of the European Economic Association, Jg. 13, H. 6, S. 1136-1166. DOI:10.1111/jeea.12134

Abstract

"We analyze a general search model with on-the-job search (OJS) and sorting of heterogeneous workers into heterogeneous jobs. For given values of nonmarket time, the relative efficiency of OJS, and the amount of search frictions, we derive a simple relationship between the unemployment rate, mismatch, and wage dispersion. We estimate the latter two from standard micro data. Our methodology accounts for measurement error, which is crucial to distinguish true from spurious mismatch and wage dispersion. We find that without frictions, output would be about 9.5% higher if firms can commit to pay wages as a function of match quality and 15.5% higher if they cannot. Noncommitment leads to a business-stealing externality which causes a 5.5% drop in output." (Author's abstract, IAB-Doku) ((en))

Zitatform

Guerrero, Omar A. & Eduardo López (2015): Firm-to-firm labor flows and the aggregate matching function. A network-based test using employer - employee matched records. In: Economics letters, Jg. 136, H. November, S. 9-12. DOI:10.1016/j.econlet.2015.08.009

Abstract

"The assumption of aggregate matching functions in labor markets is tested using a network configuration model for directed multigraphs. We use employer - employee matched records of the universe of employees and firms in Finland and find that aggregate matching functions, even at the level of submarkets, cannot explain the vast majority of the observed patterns of labor flows between firms. Our findings suggest the need for theoretical frameworks that take into account the structure of labor market frictions." (Author's abstract, © 2015 Elsevier) ((en))