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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))