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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)

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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))

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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))