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Vacchiano, Mattia (2022): Nine Mechanisms of Job-Searching and Job-Finding Through Contacts Among Young Adults. In: Sociological research online, Jg. 27, H. 2, S. 361-378. DOI:10.1177/13607804211009525

Abstract

"Since Granovetter’s seminal works, the influence of personal networks on the labour market has attracted widespread attention. This article analyses the role played by contacts in the context of the labour trajectories of young people in Spain, for whom the use of personal networks represents one of the most important job-searching methods. Using narrative data extracted from a life-history grid and ego-network generator, the analysis brings to light nine mechanisms in which personal contacts intervene in job-searching and job-finding in a sample of 90 young people living in the Barcelona Metropolitan Area. The article emphasizes that contacts play primarily three roles in these processes as informers, employers, or influencers. This distinction offers a renewed framework for the study of networks in the labour market, further complementing the debate on the strength of ties. Using this framework allows me to create a map of the mechanisms that shed light on personal networks as tools with which to deal with labour insecurity and unemployment among young people, thus providing resources that to a large extent reaffirm the objective character of class differences. The article offers innovative insights into how social capital operates in the labour market and helps understand how youth precarity, which is widespread in Spain, is experienced in a relational way." (Author's abstract, IAB-Doku) ((en))

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Arthur, Rudy (2021): Studying the UK job market during the COVID-19 crisis with online job ads. In: PLoS ONE, Jg. 16, H. 5. DOI:10.1371/journal.pone.0251431

Abstract

"The COVID-19 global pandemic and the lockdown policies enacted to mitigate it have had profound effects on the labour market. Understanding these effects requires us to obtain and analyse data in as close to real time as possible, especially as rules change rapidly and local lockdowns are enacted. This work studies the UK labour market by analysing data from the online job board Reed.co.uk, using topic modelling and geo-inference methods to break down the data by sector and geography. I also study how the salary, contract type, and mode of work have changed since the COVID-19 crisis hit the UK in March. Overall, vacancies were down by 60 to 70% in the first weeks of lockdown. By the end of the year numbers had recovered somewhat, but the total job ad deficit is measured to be over 40%. Broken down by sector, vacancies for hospitality and graduate jobs are greatly reduced, while there were more care work and nursing vacancies during lockdown. Differences by geography are less significant than between sectors, though there is some indication that local lockdowns stall recovery and less badly hit areas may have experienced a smaller reduction in vacancies. There are also small but significant changes in the salary distribution and number of full time and permanent jobs. As well as the analysis, this work presents an open methodology that enables a rapid and detailed survey of the job market in unsettled conditions and describes a web application jobtrender.com that allows others to query this data set." (Author's abstract, IAB-Doku) ((en))

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Bagger, Jesper, Francois Fontaine, Manolis Galenianos & Ija Trapeznikova (2021): Vacancies, Employment Outcomes and Firm Growth: Evidence from Denmark. (IZA discussion paper 14436), Bonn, 31 S.

Abstract

"We use comprehensive data from Denmark that combine online job advertisements with a matched employer-employee dataset and a firm-level dataset with information on revenues and value added to study the relationship between vacancy-posting and various firm outcomes. Posting a vacancy is associated with a 4.5 percentage point increase in a firm's hiring rate and two-thirds of the additional hiring occurs within two months. The response of hiring from employment is twice as large as the response of hiring from non-employment. Firms that are smaller, low-wage and fast-growing are associated with larger hiring responses and that response materializes faster at larger firms, low-wage firms and fast-growing firms. We also find that separations are associated with subsequent vacancy posting and this effect is stronger for separations to employment, consistent with replacement hiring and the presence of vacancy chains. Growth in revenue and value added strongly predict vacancy-posting, with negative shocks having a stronger effect than positive shocks and larger shocks having less-than-proportional responses." (Author's abstract, IAB-Doku) ((en))

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Balgová, Mária, Simon Trenkle, Christian Zimpelmann & Nico Pestel (2021): Job Search during a Pandemic Recession: Survey Evidence from the Netherlands. (IZA discussion paper 14180), Bonn, 36 S.

Abstract

"This paper studies job search behavior in the midst of a pandemic recession. We use long-running panel data from the Netherlands (LISS) and complement the core survey with our own COVID-specific module, conducted in June 2020, surveying job search effort of employed as well as unemployed respondents. We estimate an empirical model of job search over the business cycle over the period 2008-2019 to explore the gap between predicted and actual job search behavior in 2020. We find that job search during the pandemic recession differs strongly from previous downturns. The unemployed search significantly less than what we would normally observe during a recession of this size, while the employed search mildly more. Expectations about the duration of the pandemic seem to play a key role in explaining job search effort for the unemployed in 2020. Furthermore, employed subjects affected by changes in employment status due to COVID-19 are more likely to search for a job. Conversely, beliefs about infection risk do not seem to be related to job search in a systematic way." (Author's abstract, IAB-Doku) ((en))

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Bernstein, Joshua, Alexander W. Richter & Nathaniel Throckmorton (2021): Nonlinear Search and Matching Explained. (Working paper / Federal Reserve Bank of Dallas, Research Department 2106), Dallas, TX, 28 S. DOI:10.24149/wp2106

Abstract

"Competing explanations for the sources of nonlinearity in search and matching models indicate that they are not fully understood. This paper derives an analytical solution to a textbook model that highlights the mechanisms that generate nonlinearity and quantifies their contributions. Procyclical variation in the matching elasticity creates nonlinearity in the job finding rate, which interacts with the law of motion for unemployment. These results show the matching function choice is not innocuous. Quantitatively, the Den Haan et al. (2000) matching function more than doubles the skewness of unemployment and welfare cost of business cycles, compared to the Cobb-Douglas specification." (Author's abstract, IAB-Doku) ((en))

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Bransch, Felix (2021): Job search intensity of unemployed Workers and the business cycle. In: Economics Letters, Jg. 205, S. 1-4. DOI:10.1016/j.econlet.2021.109927

Abstract

"This paper provides empirical evidence for the cyclicality in the job search intensity of unemployed workers using data on job search behavior from the Dutch National Bank Household Survey (DHS), an annual panel survey, for the years 1993 until 2018. I find that job search intensity is counter-cyclical, adding to the mixed results of prior studies that mainly rely on data from the US. This finding is robust to using different measures of search intensity and business cycle indicators. The counter-cyclical pattern seems to be driven by changes in the composition of searchers." (Author's abstract, IAB-Doku, © 2021 Elsevier) ((en))

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Brun-Schammé, Amandine & Martin Rey (2021): A new approach to skills mismatch. (OECD productivity working papers 24), Paris, 28 S. DOI:10.1787/e9563c2a-en

Abstract

"Skills mismatch - the sub-optimal use of an individual's skills in their occupation - can be a source of dissatisfaction for workers and a brake for productivity growth. In our view, a difference in the level of skills within an occupation is not sufficient to infer that a skills mismatch exists. Since skills-mismatch is the result of a disparity between the supply and demand of labour, the quantifying of skills-mismatch must therefore be based on the mechanisms involved in this disparity. We propose to include in our measurement the level of education and field of study, which are key markers of an individual's skill level in the labour market. This makes it possible to identify, among individuals whose skill level differs from others within an occupation, those whose training profile can (or cannot) explain this situation. Through using the OECD PIAAC 2012 survey, this paper first identifies with data for France, individuals who present an apparent skills mismatch according to the framework proposed. Following an international comparison of “apparent skills mismatch rates”, we conclude this study by observing how the different groups identified differ in terms of how they perceive their employment situation as well as their individual characteristics." (Author's abstract, IAB-Doku) ((en))

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Böheim, René & Michael Christl (2021): Mismatch Unemployment in Austria. The Role of Regional Labour Markets for Skills. (CESifo working paper 9080), München, 38 S.

Abstract

"During the last decade, the Austrian labour market experienced a substantial outward shift of the Beveridge curve. Using detailed administrative data on vacancies and registered unemployed by region and skill level, we test which factors caused this shift. We find that the Beveridge curve shifted primarily because mismatch increased substantially. Looking on the regional and skill dimension of mismatch unemployment, we find a substantial increase of mismatch unemployment for manual routine tasks as well as for the region of Vienna." (Author's abstract, IAB-Doku) ((en))

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Cattani, Luca, Stefano Dughera & Fabio Landini (2021): Interlocking Complementarities Between Job Design And Labour Contracts. (Working paper series / Dipartimento economia e statistica "Cognetti de Martiis" 2021,14), Torino, 44 S.

Abstract

"The drivers of large within-industry heterogeneity in the use of non-standard employment are still poorly understood. Specifically, there is little evidence on how firm-specific factors related to the organization of work affect the diversity of hiring decisions. This paper contributes to this line of research by studying the existence of interlocking complementarities between job design and labour contract at the firm level. Using a formal model, we show that firms face two organizational equilibria: one in which job designs with high routine task intensity are matched with a large use of non-standard contracts; and the other in which low routine task intensity combines with a small use of non-standard contracts. These complementarities exist because while non-standard contracts allow firm to adjust to external shocks, they also provide little incentive to invest in firm-specific knowledge. Since the cost associated with the lack of such knowledge is lower (higher) in firms with high (low) routine task intensity, they are also more (less) likely to use this type of contracts. We test the predictions of our model using linked-employer-employee data from the Emilia-Romagna region. We build an index of firm's routine task intensity by matching information from INAPP data at the occupation level. The empirical evidence is consistent with our theory: the use of non-standard contracts is positively associated with routine task intensity at the firm level. This result holds controlling for a wide range of firm-specific and contextual covariates and it is robust to alternative estimation methods (OLS, panel and IV). The related managerial and policy implications are discussed." (Author's abstract, IAB-Doku) ((en))

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Desiere, Sam & Ludo Struyven (2021): Using Artificial Intelligence to classify Jobseekers: The Accuracy-Equity Trade-off. In: Journal of Social Policy, Jg. 50, H. 2, S. 367-385. DOI:10.1017/S0047279420000203

Abstract

"Artificial intelligence (AI) is increasingly popular in the public sector to improve the cost-efficiency of service delivery. One example is AI-based profiling models in public employment services (PES), which predict a jobseeker's probability of finding work and are used to segment jobseekers in groups. Profiling models hold the potential to improve identification of jobseekers at-risk of becoming long-term unemployed, but also induce discrimination. Using a recently developed AI-based profiling model of the Flemish PES, we assess to what extent AI-based profiling 'discriminates' against jobseekers of foreign origin compared to traditional rule-based profiling approaches. At a maximum level of accuracy, jobseekers of foreign origin who ultimately find a job are 2.6 times more likely to be misclassified as 'high-risk' jobseekers. We argue that it is critical that policymakers and caseworkers understand the inherent trade-offs of profiling models, and consider the limitations when integrating these models in daily operations. We develop a graphical tool to visualize the accuracy-equity trade-off in order to facilitate policy discussions." (Author's abstract, IAB-Doku) ((en))

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Engbom, Niklas (2021): Contagious Unemployment. (NBER working paper 28829), Cambridge, MA, 46, 24 S.

Abstract

"Recent micro evidence of how workers search for jobs is shown to have critical implications for the macroeconomic propagation of labor market shocks. Unemployed workers send over 10 times as many job applications in a month as their employed peers, but are less than half as likely per application to make a move. I interpret these patterns as the unemployed applying for more jobs that they are less likely to be a good fit for. During periods of high unemployment, it consequently becomes harder for firms to assert who is a good fit for the job. By raising the cost of recruiting, a short-lived adverse shock has a persistent negative impact on the job finding rate. I provide evidence that firms spend more time on recruiting when unemployment is high, quantitatively consistent with the theory." (Author's abstract, IAB-Doku) ((en))

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Forsythe, Eliza & Russell Weinstein (2021): Recruiting Intensity, Hires, and Vacancies: Evidence from Firm-Level Data. (IZA discussion paper 14138), Bonn, 42 S.

Abstract

"We investigate employer recruiting behavior, using detailed firm-level data from a national survey of employers hiring recent college graduates. We show employers adjust recruiting effort, hiring standards, and compensation with the business cycle, beliefs about tightness, and their own hiring plans. We then show that firms expending greater recruiting effort hire more individuals per vacancy. The results suggest that when firms want to increase hires they adjust vacancies and recruiting intensity per vacancy, which may help explain the breakdown in the standard matching function during the Great Recession. Our measure of recruiting effort explains roughly 16% of the residual elasticity of the vacancy yield with respect to hires." (Author's abstract, IAB-Doku) ((en))

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Galanakis, Yannis (2021): "Are you in the right job?" Human Capital Mismatch in the UK. (GLO discussion paper / Global Labor Organization 976), Essen, 58 S.

Abstract

"This paper examines a problem of worker misallocation into jobs. A theoretical model, allowing for heterogeneous workers and firms, shows that job search frictions generate mismatch between employees and employers. In the empirical analysis, the British Household Panel Survey (BHPS), the UK household Longitudinal Study (UKHLS) and British Cohort Study 1970 (BCS70) data are used to measure the incidence of mismatch, how it changes over time and whether it can be explained by unobserved ability. Results show that (i) the incidence of mismatch increases after the Great Recession. (ii) Individual transitions to/from matching take place due to workers' occupational mobility and over-time skills development. (iii) Employees can find better jobs or their mobility occurs earlier than the aggregate change of skills. (iv) Controlling for individual heterogeneity, measured by cognitive and non-cognitive skill test scores throughout childhood, does not decrease the incidence of mismatch. This suggests that unobserved productivity does not generate mismatch in the labour market." (Author's abstract, IAB-Doku) ((en))

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Gorn, Alexey (2021): The role of headhunters in wage inequality: It's all about matching. In: Review of Economic Dynamics, Jg. 40, S. 309-346. DOI:10.1016/j.red.2020.10.006

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Heller, Sara B. & Judd B. Kessler (2021): The Effects of Letters of Recommendation in the Youth Labor Market. (NBER working paper 29579), Cambridge, Mass, 43 S. DOI:10.3386/w29579

Abstract

"Youth employment has been near historic lows in recent years, and racial gaps persist. This paper tests whether information frictions limit young people's labor market success with a field experiment involving over 43,000 youth in New York City. We build software that allows employers to quickly and easily produce letters of recommendation for randomly selected youth who worked under their supervision during a summer youth employment program. We then send these letters to nearly 9,000 youth over two years. Being sent a letter generates a 3 percentage point (4.5 percent) increase in employment the following year, with both employment and earnings increases persisting over the two-year follow-up period. By posting our own job advertisement, we document that while treatment youth do use the letters in applications, there is no evidence of other supply-side responses (i.e., no increased job search, motivation, or confidence); effects appear to be driven by the demand side. Labor market benefits accrue primarily to racial and ethnic minorities, suggesting frictions may contribute to racial employment gaps. But improved employment may also hamper on-time high school graduation. Additional evidence indicates that letters help improve job match quality. Results suggest that expanding the availability of credible signals about young workers—particularly for those not on the margin of graduating high school—could improve the efficiency of the youth labor market." (Author's abstract, IAB-Doku) ((en))

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Kekezi, Orsa & Ron Boschma (2021): Returns to migration after job loss - The importance of job match. In: Environment and planning. A, Economy and space, Jg. 53, H. 6, S. 1565-1587. DOI:10.1177/0308518X211004577

Abstract

"Loss of specific human capital is often identified as a mechanism through which displaced workers might experience permanent drops in earnings after job loss. Research has shown that displaced workers who migrate out of their region of origin have lower earnings than those who do not. This paper extends the discussion on returns to migration by accounting for the type of jobs people get and how related they are to their skills. Using an endogenous treatment model to control for selection bias in migration and career change, we compare displaced stayers with displaced movers in Sweden. Results show that migrants who get a job that matches their occupation- and industry-specific skills display the highest earnings among all displaced workers. If migration is combined with a job mismatch, earning losses are instead observed. This group experiences the lowest earnings among all displaced workers." (Author's abstract, IAB-Doku, © 2021 a Pion publication) ((en))

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Korenok, Oleg & David Munro (2021): Wage bargaining in a matching market: Experimental evidence. In: Labour Economics, Jg. 73. DOI:10.1016/j.labeco.2021.102078

Abstract

"Wage negotiation plays a central role in the dynamics of search and matching models. We explore the theoretical wage predictions of the canonical search and matching model of Diamond (1982) in laboratory bargaining experiments. Overall, wages in the experiment are less responsive to changes in the market conditions than theory predicts. Wages respond to changes in unemployment insurance in the correct direction, yet the size of the response is about half of what theory predicts. On the other hand, contrary to theory, wages are unresponsive to changes in the level of unemployment. We also find that wages of new matches are more sensitive than wages of on-going matches, and that the duration of unemployment influences wages in certain settings." (Author's abstract, IAB-Doku, © 2022 Elsevier) ((en))

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Lacava, Chiara (2021): Matching and sorting across regions. (ICIR working paper series 2021,44), Frankfurt am Main, 39 S.

Abstract

"I measure the effects of workers' mobility across regions of different productivity through the lens of a search and matching model with heterogeneous workers and firms estimated with administrative data. In an application to Italy, I find that reallocation of workers to the most productive region boosts productivity at the country level but amplifies differentials across regions. Employment rates decline as migrants foster job competition, and inequality between workers doubles in less productive areas since displacement is particularly severe for low-skill workers. Migration does affect mismatch: mobility favors co-location of agents with similar productivity but within-region rank correlation declines in the most productive region. I show that worker-firm complementarities in production account for 33% of the productivity gains. Place-based programs directed to firms, like incentives for hiring unemployed or creating high productivity jobs, raise employment rates and reduce the gaps in productivity across regions. In contrast, subsidies to attract high-skill workers in the South have limited effects." (Author's abstract, IAB-Doku) ((en))

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Laschever, Ron A. & Russell Weinstein (2021): Preference Signaling and Worker-Firm Matching: Evidence from Interview Auctions. (IZA discussion paper 14622), Bonn, 56 S.

Abstract

"We study whether there are improvements in worker-firm matching when employers and applicants can credibly signal their interest in a match. Using a detailed résumé dataset of more than 400 applicants from one university over five years, we analyze a matching process in which firms fill some of their inter- view slots by invitation and the remainder are filled by an auction. Consistent with the predictions of a signaling model, we find the auction is valuable for less desirable firms trying to hire high desirability applicants. Second, we find evidence that is consistent with the auction benefiting overlooked applicants. Candidates who are less likely to be invited for an interview (e.g., non-U.S. citizens) are hired after having the opportunity to interview through the auction. Among hires, these candidates are more represented among auction winners than invited interviewees, and this difference is more pronounced at more desirable firms. Finally, counterfactual analysis shows the auction increases the number and quality of hires for less desirable firms, and total hires in the market." (Author's abstract, IAB-Doku) ((en))

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Marinescu, Ioana & Daphne Skandalis (2021): Unemployment Insurance and Job Search Behavior. In: The Quarterly Journal of Economics, Jg. 136, H. 2, S. 887-931. DOI:10.1093/qje/qjaa037

Abstract

"How does unemployment insurance (UI) affect unemployed workers’ search behavior? Search models predict that until benefit exhaustion, UI depresses job search effort and increases reservation wages. Over an unemployment spell, search effort should increase up to benefit exhaustion and stay high thereafter. Meanwhile, reservation wages should decrease up to benefit exhaustion and stay low thereafter. To test these predictions, we link administrative registers to data on job search behavior from a major online job search platform in France. We follow over 400,000 workers, as long as they remain unemployed. We analyze the changes in search behavior around benefits exhaustion and take two steps to isolate the individual response to unemployment benefits. First, our longitudinal data allows us to correct for changes in sample composition over the spell. Second, we exploit data on workers eligible for 12–24 months of UI as well as workers ineligible for UI, to control for behavior changes over the unemployment spell that are independent of UI. Our results confirm the predictions of search models. We find that search effort (the number of job applications) increases by at least 50% during the year preceding benefits exhaustion and remains high thereafter. The target monthly wage decreases by at least 2.4% during the year preceding benefits exhaustion and remains low thereafter. In addition, we provide evidence for duration dependence: workers decrease the wage they target by 1.5% over each year of unemployment, irrespective of their UI status." (Author's abstract, IAB-Doku) ((en))

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Michau, Jean-Baptiste (2021): On the provision of insurance against search-induced wage fluctuations. In: The Scandinavian journal of economics, Jg. 123, H. 1, S. 382-414. DOI:10.1111/sjoe.12401

Abstract

"Should workers be provided with insurance against search-induced wage fluctuations? To answer this question, I rely on numerical simulations of a model of on-the-job search and precautionary savings. The model is calibrated to low skilled workers in the U.S. The extent of insurance is determined by the degree of progressivity of a non-linear transfer schedule. The fundamental trade-off is that a more generous provision of insurance reduces incentives to search for better paying jobs, which increases the cost of providing insurance. I show that progressivity raises the search intensity of unemployed worker, which reduces the equilibrium rate of unemployment, but lowers the search intensity of employed job seekers, which reduces the output level. I also solve numerically for the optimal non-linear transfer schedule. The optimal policy is to provide little insurance up to a monthly income level of $1350, such as to preserve incentives to move up the wage ladder, and nearly full insurance above $1450. This policy reduces the standard deviation of labor income net of transfers by 34% and generates a consumption-equivalent welfare gain of 0.7%. The absence of private savings does not fundamentally change the shape of the optimal transfer function, but tilts the optimal policy towards more insurance, at the expense of a less efficient allocation of workers across jobs." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Rivera, Lauren A. & Jayanti Owens (2021): Glass Floors and Glass Ceilings: Sex Homophily and Heterophily in Job Interviews. In: Social forces, Jg. 99, H. 4, S. 1363-1393. DOI:10.1093/sf/soaa072

Abstract

"A widely assumed but little-tested theory of employment interviewing suggests that female job applicants will be evaluated more favorably when they are paired with female versus male interviewers. To capitalize on this hypothesized affinity, a number of organizations have begun explicitly pairing female job applicants with female interviewers, in hopes of increasing the representation of women among new hires. However, whether this practice actually results in more favorable outcomes for female job candidates remains an open empirical question. Using data on job interview evaluations from a large, professional service organization, we test the effect of matching female job candidates with female interviewers on interview scores. Highlighting the contextually dependent nature of sex homophily, we find that the effect of being matched with a female interviewer varies by the female candidate’s perceived skill level. Sex matches in job interviews work in favor of those female candidates perceived to be lowest in skill; have a small, statistically nonsignificant negative effect for female candidates of average perceived skill; and have a significant, negative effect for women at the highest level of perceived skill. We argue that matching female candidates with female evaluators in job interviews can operate both as a glass floor that can prevent female applicants from falling below a certain scoring threshold but also a glass ceiling that can prevent the most skilled female applicants from receiving the most favorable interview ratings." (Author's abstract, IAB-Doku) ((en))

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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

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

Abstract

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