Zitatform

Baktash, Mehrzad B. (2026): Overeducation, performance pay and wages: evidence from Germany. In: Education Economics, Jg. 34, H. 4, S. 529-549. DOI:10.1080/09645292.2025.2546445

Abstract

"Overeducated workers are more productive and have higher wages in comparison to their adequately educated coworkers in the same jobs. However, they have lower wages than their similarly educated peers who are in correctly matched jobs. This study examines the hypotheses that overeducated workers sort into performance pay jobs as an adjustment mechanism and that performance pay enhances their wages. Using the SOEP, I show that overeducation associates with a higher likelihood of sorting into performance pay jobs and that performance pay significantly improves the wages of overeducated workers. The findings hold in endogenous switching regressions and several robustness checks." (Author's abstract, IAB-Doku) ((en))

Zitatform

Bauer, Anja & Enzo Weber (2026): Decomposing Variations in Labor Market Mismatch. (IAB-Discussion Paper 03/2026), Nürnberg, 19 S. DOI:10.48720/IAB.DP.2603

Abstract

"Dieses Diskussionspapier zeigt, wie Veränderungen des Arbeitsmarkt-Mismatch auf die Komponenten Arbeitslosigkeit, offene Stellen und Matchingeffizienz zurückgeführt werden können. Wir stellen fest, dass die Arbeitslosigkeit der wichtigste Faktor ist und auch die zyklischen Schwankungen bestimmt, während die Beiträge der offenen Stellen geringer und antizyklisch sind. Wir unterscheiden nach der Ursache der Arbeitslosigkeit und zeigen, dass Ströme gegenüber der Beschäftigung den Mismatch verstärken, während dies für Nichtbeschäftigung und Ausbildung / Weiterbildung nicht der Fall ist." (Autorenreferat, IAB-Doku)

Zitatform

Birinci, Serdar, Fatih Karahan, Yusuf Mercan & Kurt See (2026): Labor Market Shocks and Monetary Policy. In: Journal of monetary economics, Jg. 159. DOI:10.1016/j.jmoneco.2026.103928

Abstract

"We develop a heterogeneous-agent New Keynesian model with a frictional labor market and on-the-job search to study how employer-to-employer (EE) transitions affect macroeconomic outcomes and monetary policy. We show that accounting for market incompleteness quantitatively alters the positive and normative implications of EE fluctuations. Under imperfect self-insurance, when a higher EE rate causes higher inflation and a higher real interest rate, wealthy individuals — who are more sensitive to interest rate changes — cut consumption by more. As a result, an economy with perfect self-insurance overestimates the decline in aggregate demand when the EE rate is higher. The optimal simple monetary policy rule responds to inflationary pressures from a higher EE rate by raising the nominal rate less aggressively when markets are complete relative to a model with imperfect self-insurance." (Author's abstract, IAB-Doku, Published by Elsevier B.V.) ((en))

Zitatform

Bischof, Stephan & Rolf van der Velden (2026): Wage effects of skill mismatches across domains: the importance of ICT skills. In: Oxford economic papers, Jg. 78, H. 2, S. 388-409. DOI:10.1093/oep/gpag001

Abstract

"To date, it is unclear in which skills mismatches are most relevant for individuals’ wages, and whether surpluses or deficits in one domain can offset those in another. This study addresses these gaps by examining how mismatches in five key skill domains (ICT, reading, mathematics, science, and reasoning) are linked to individuals’ wages. Utilizing data from the 2016 wave of the German National Educational Panel Study (NEPS) Adult Cohort, our findings reveal that skill deficits consistently result in lower wages, whereas surpluses do not pay off in each domain. Notably, mismatches in ICT skills are most significant for individuals’ wages: ICT deficits not only reduce wages, but can also negate wage benefits from surpluses in other skills. Conversely, ICT surpluses can compensate for wage penalties associated with deficits in other domains. These findings underscore the importance of digital skills for productivity and wage potential in the modern labour market." (Author's abstract, IAB-Doku) ((en))

Zitatform

Drasch, Katrin & Gerhard Krug (2026): Finding a job through social networks: monetary and nonmonetary returns for employed and unemployed job seekers. In: European Societies, S. 1-28. DOI:10.1162/euso.a.106

Abstract

"This study examines the impact of job vacancy information obtained through personal contacts on monetary and nonmonetary job search outcomes. We hypothesise that the effects will be positive for both kinds of outcome, and that these effects may depend on employment status prior to finding a new job. Additionally, we hypothesise that information from professional personal contacts will lead to better job search outcomes than information from private personal contacts. We use panel data from the German Panel Study “Labour Market and Social Security” (PASS) and fixed effects regressions to test these hypotheses. Monetary outcomes are measured by wages and nonmonetary outcomes by job satisfaction. Overall, we find that the employed tend to benefit more than the unemployed. However, the specific pattern differs depending on whether vacancy information stems from personal or professional contacts and on the type of outcome (monetary or nonmonetary)." (Author's abstract, IAB-Doku) ((en))

Zitatform

Galos, Diana Roxana & Joris Frese (2026): Online social class cues and employability: Experimental evidence from Germany. In: Social science research, Jg. 133. DOI:10.1016/j.ssresearch.2025.103258

Abstract

"Social media platforms, such as Twitter or Instagram, offer easily accessible information – relevant or not – for employers when evaluating candidates for a position. In particular, they tend to be sources of information about individuals’ interests and leisure activities.Because interests are highly stratified by social class (e.g., engagement in highbrow and lowbrow activities), this represents a new way for class to potentially manifest itself in the hiring process. To study discrimination in hiring based on online social class cues, we conducted a pre-registered survey experiment in Germany with samples of employers and non-employers, manipulating job applicants’ class cues on social media(highbrow versus lowbrow). Overall, we found no difference in preferences for the candidates displaying highbrow and lowbrow activities on their social media profiles. However, this masks important differences in the specific activities proxying for class. When these activities have no relevance for the jobs in question, higher-class candidates are preferred. Exploratory analyses show that respondents are more likely to express positive sentiments toward the higher-class profiles, with highbrow activities being positively associated with work-related traits. Our findings highlight the need to consider how digital environments and, more specifically, online social class cues, may contribute to class bias in hiring." (Author's abstract, IAB-Doku, © 2025 The Authors. Published by Elsevier Inc.) ((en))

Zitatform

Goller, Daniel, Enzo Brox & Stefan C. Wolter (2026): Imperfect Self-knowledge about Skills and Skill Mismatch. (Working paper / Swiss Leading House 253), Zürich, 40 S., App.

Abstract

"Why do young people sort into poorly fitting occupations? This paper shows that imperfect self-knowledge about skills is an important source of skill mismatch at labor market entry. We use unique data from standardized professional aptitude tests linked to administrative records on educational trajectories and early labor market outcomes in Switzerland. The data allow us to observe objective skills and subjective skill beliefs for many productivity-relevant skills in a high-stakes setting. We document large differences among individuals in how well their beliefs align with their skills. Imperfect self-knowledge predicts misaligned occupational aspirations, higher realized skill mismatch, and a higher probability of dropout. Guided by a Roy-style model of occupational choice with imperfect self-knowledge, we interpret these findings as evidence that distorted self-assessments at the school-to-work transition contribute to the misallocation of talent." (Author's abstract, IAB-Doku) ((en))

Zitatform

Gottfries, Axel (2026): Bargaining with Renegotiation in Models with On-the-Job Search. In: Review of Economic Dynamics, Jg. 61. DOI:10.1016/j.red.2026.101343

Abstract

"I present an on-the-job search model with bargaining and renegotiation in which turnover depends on the contracted wage. There is a unique monotone Markov equilibrium. The model encompasses elements of dynamic monopsony and rent sharing. Firms benefit from the reduced turnover associated with a higher wage and workers extract rents due to their bargaining power. Shorter wage contracts reduce the response of turnover to the contracted wage, reducing a firm’s willingness to increase pay, and thereby the worker’s equilibrium share of the match surplus. As renegotiation becomes continuous, linear surplus sharing is obtained. The model further generates spillover effects from minimum wages due to firms’ incentives to increase contracted wages to reduce turnover. These incentives, and therefore the spillovers, are weaker when wage contracts are shorter. Finally, I endogenize the frequency of renegotiation, and find that, generically, the equilibrium features infrequently renegotiated wages." (Author's abstract, IAB-Doku, © 2026 The Author(s). Published by Elsevier Inc.) ((en))

Zitatform

Hartl, Tobias, Christian Hutter & Enzo Weber (2026): Matching for three: The search activities of workers, firms, and employment services. In: Economic Modelling, Jg. 155, 2025-12-08. DOI:10.1016/j.econmod.2025.107434

Abstract

"The standard labour market matching function neglects a substantial variation of hirings. A crucial driver of this latent part is the search intensity of job seekers and firms, as well as the placement intensity of employment agencies. However, there is still a lack of integration of all three search and placement intensities into a unified theoretical framework. Their combined labour market effects have not been estimated so far. We feed all three intensities into the theoretical framework of a labour market matching function to estimate their impact on the job finding rate – effects which are not settled a priori. This could provide important stylised facts for subsequent theory building. For measuring the search and placement intensities, we use big data on online activity obtained from the job exchange of the German Federal Employment Agency and from its internal placement-software. The results show that all three intensities significantly contribute to the variation in job findings beyond vacancies and unemployment. During the COVID-19 crisis, reduced search intensities accounted for 44 percent of lost hirings and 16 percent of the labour market related increase in unemployment." (Author's abstract, IAB-Doku, © 2025 Elsevier) ((en))

Zitatform

Hennrich, Jonas & Daria Schaller (2026): Berufseinsteiger*innen im Fokus: Unternehmen setzen auf Soft Skills und Künstliche Intelligenz. In: Ifo-Schnelldienst, Jg. 79, H. 01, S. 77-84.

Abstract

"Das ifo Institut befragt in Zusammenarbeit mit Randstad Deutschland quartalsweise deutsche HR-Abteilungen zu personalpolitisch relevanten Themen. Neben wiederkehrenden Standardfragen standen im vierten Quartal Berufseinsteiger*innen und die Bedeutung von Berufserfahrung im Fokus. Etwa ein Drittel der Unternehmen sieht Berufserfahrung inzwischen als stärkeres Einstellungskriterium, während die Mehrheit keinen Bedeutungszuwachs beobachtet. Bei Einsteiger*innen zählen vor allem Kommunikations- und Teamfähigkeit, gefolgt von Selbstorganisation und Verantwortungsbewusstsein. Außerdem gewinnt Künstliche Intelligenz (KI) an Bedeutung: Viele Unternehmen planen, KI bei typischen Einsteigeraufgaben einzusetzen, einen großflächigen Ersatz von Mitarbeitenden erwarten jedoch nur wenige. Die meisten Betriebe planen, die Zahl der Einstiegsstellen stabil zu halten." (Autorenreferat, IAB-Doku)

Zitatform

Jungbauer, Thomas (2026): Strategic Wage Posting, Market Power, and Mismatch. In: Journal of labor economics, Jg. 44, H. 2, S. 481-514. DOI:10.1086/733046

Abstract

"This paper analyzes the effects of firms posting multiple but varying number of vacancies, hence differing in their market power, in professional labor markets. I find that strategic wage Posting does, in general, not result in an efficient assignment of workers to firms. This is because firms with a larger number of vacancies pay on average lower wages than their competitors due to alack of within-firm rivalry. If highly productive firms hire more, the resulting welfare loss dueto mismatch may be substantial. Moreover, I provide a potential explanation why firms postuniform wages, missing out on more-skilled workers." (Author's abstract, IAB-Doku) ((en))

Zitatform

Loewy, Michael B. (2026): Teaching two-sided labor search theory to undergraduates: A model and some exercises. In: The journal of economic education, Jg. 57, H. 1, S. 27-38. DOI:10.1080/00220485.2025.2549718

Abstract

"Although the Diamond-Mortensen-Pissarides (DMP) model originated roughly 40 years ago and its authors shared the 2010 Nobel Memorial Prize in Economic Sciences, their work is still absent from several recent editions of popular intermediate macroeconomics textbooks. In contrast, Stephen Williamson's textbook (2014, 2018) presents an early static version of the DMP model accessible to undergraduates. This article's author compensates for the topic's omission in some intermediate-level textbooks by discussing Williamson's static DMP model and presenting four additional exercises not covered in his main text: (1) a change in a vacancy's posting price; (2) an increase in workers' relative bargaining power; (3) the introduction of a minimum wage; and (4) the introduction of an endogenous unemployment insurance benefit. The latter exercise yields an interesting neutrality result." (Author's abstract, IAB-Doku) ((en))

Zitatform

Vonk, Laura & Kobe De Keere (2026): Legitimizing Beauty in Hiring: An Analysis of Cultural Repertoires in Defense of Appearances as Selection Criteria. In: Work and occupations, Jg. 53, H. 2, S. 545-575. DOI:10.1177/07308884251362257

Abstract

"This article builds upon the body of literature confirming that aesthetics matter for finding work by investigating how gatekeepers reflect on the relevance of appearances in their evaluations of job candidates. Starting from the notion that in hiring the relevance of appearance conflicts with ideals of meritocracy and fairness, we seek to understand how gatekeepers solve this dispute and how they morally legitimize the importance of aesthetics. The analyses are based on in-depth interviews with 40 employee gatekeepers from the cultural (n = 17) and corporate (n = 23) sector, and show that although the gatekeepers problematize the importance of beauty, they do acknowledge that it plays a role in their evaluations. Three cultural repertoires for solving this contradiction and for legitimizing appearances as a hiring criterion are discerned from the data: (1) beauty as a business case; (2) appearances express personality; (3) looking right is a matter of effort. What the gatekeepers try to do is to come to a hiring decision using evaluation criteria that can be considered contextually legitimate. Yet, this can lead to applying evaluation criteria and, more structurally, labor market outcomes that they find morally problematic. This study highlights the relevance of cultural repertoires in processes of legitimation for understanding reproductions of inequalities related to appearances." (Author's abstract, IAB-Doku) ((en))

Zitatform

Benanav, Aaron (2025): When an Accountant Becomes a Taxi Driver: Unemployment, Labor Market Institutions, and Economic Theory. In: History of political economy, Jg. 57, H. S1, S. 81-110. DOI:10.1215/00182702-12134470

Abstract

"This article reconstructs the history of how economists came to understand unemployment as a distinct category and how that understanding transformed over time. In the early twentieth century, governments regulated access to unemployment benefits and established labor market protections, drawing sharper boundaries between employment and unemployment. Historians have shown that these boundaries were politically constructed, but economic theory largely treated them as given. Postwar Keynesian models assumed that unemployment was a temporary and measurable condition between spells of stable, high-wage work. However, that assumption rested on a historically specific labor market structure that began to unravel in the 1970s and 1980s. As stable jobs contracted, more workers cycled through precarious employment rather than remaining fully unemployed or finding new stable work. Economic theory responded with new models focused on individual incentives and firm behavior, but these also tended to treat emerging patterns as evidence of how unemployment had always functioned, rather than as signs of a shifting institutional landscape. By tracing how the category of unemployment was constructed and transformed—and how economists responded to those shifts—this article shows how changes in institutional context shape the development of economic thought itself." (Author's abstract, IAB-Doku) ((en))

Zitatform

Birinci, Serdar, Kurt See & Shu Lin Wee (2025): Job Applications and Labor Market Flows. In: The Review of Economic Studies, Jg. 92, H. 3, S. 1438-1496. DOI:10.1093/restud/rdae064

Abstract

"Job applications have risen over time, yet job-finding rates remain unchanged. Meanwhile, separations have declined. We argue that increased applications raise the probability of a good match rather than the probability of job-finding. Using a search model with multiple applications and costly information, we show that when applications increase, firms invest in identifying good matches, reducing separations. Concurrently, increased congestion and selectivity over which offer to accept temper increases in job-finding rates. Our framework contains testable implications for changes in offers, acceptances, reservation wages, applicants per vacancy, and tenure, objects that enable it to generate the trends in unemployment flows." (Author's abstract, IAB-Doku) ((en))

Zitatform

Bryson, Alex & Harald Dale-Olsen (2025): Job search under changing labour taxes. In: Labour Economics, Jg. 95. DOI:10.1016/j.labeco.2025.102750

Abstract

"Workers’ job mobility decisions are related to firms’ wage policies but also depend on tax schedules. Using Norwegian population-wide administrative linked employer-employee data for 2010–2019, we study how the job-to-job turnover of employees is affected by marginal taxes and firms’ pay policies, thus drawing inferences on job search behaviour. By paying higher wages, job-to-job separation rates drop, but this negative relationship is weakened when income taxes increase, consistent with higher taxes reducing search activity. However, consistent with theory, the tax effect is smaller where workers receive performance bonuses." (Author's abstract, IAB-Doku, © 2025 The Author(s). Published by Elsevier B.V.) ((en))

Zitatform

Börschlein, Erik-Benjamin (2025): Essays on Wages and Minimum Wages in Frictional Labor Markets. 237 S. DOI:10.5283/epub.76880

Abstract

"In Deutschland ist das Zusammenspiel zwischen Löhnen und institutionellen sowie marktbedingten Friktionen ein zentrales Thema wirtschaftspolitischer Debatten. Diese Dissertation untersucht in drei empirischen Studien kausale Zusammenhänge zwischen Löhnen und Mindestlöhnen, Matchingfriktionen und Arbeitsmarktanspannung. Die Analysen basieren auf umfangreichen administrativen Daten der Bundesagentur für Arbeit und nutzen fortgeschrittene ökonometrische Methoden zur kausalen Inferenz. Die ersten beiden Kapitel betrachten institutionelle Effekte – insbesondere die Einführung des gesetzlichen Mindestlohns im Jahr 2015 – während das dritte Kapitel den Fokus auf veränderte Marktbedingungen legt, insbesondere den zunehmenden Fachkräftemangel. Ziel ist es, die Wirkungsmechanismen zwischen Löhnen und Arbeitsmarktfriktionen differenziert darzustellen. Kapitel 1 Dieses Kapitel entwickelt einen innovativen Machine-Learning-Ansatz zur verbesserten Schätzung langfristiger Lohneffekte des Mindestlohns. Übliche Studien basieren auf einem fixen Pre-Treatment-Indikator („Bite“), basierend auf Löhnen vor der Politikmaßnahme, der die Betroffenheit von der Mindestlohneinführung nur kurzfristig akkurat abbildet. Um langfristige dynamische Veränderungen zu erfassen, werden hier ein zeitvariable Bite-Indikatoren mittels LASSO-basierter Vorhersagemodelle konstruiert, welche die Inzidenz und die Intensität der Mindestlohnbetroffenheit abbilden. Basierend auf administrativen Daten der Jahre 2010–2014 wird die Mindestlohnbetroffenheit für den Zeitraum 2015–2020 vorhergesagt. In der anschließenden Differenz-von-Differenzen-Analyse zeigen sich signifikant positive Lohneffekte, die im Vergleich zu herkömmlichen Methoden jedoch geringer ausfallen und über die Zeit konstant bleiben. Die Ergebnisse deuten darauf hin, dass traditionelle Evaluierungen die Effekte überschätzen könnten, da sie dynamische Selektionseffekte und mindestlohnunabhängige Lohnentwicklungen nicht ausreichend berücksichtigen. Kapitel 2 In diesem Kapitel wird untersucht, wie sich die Einführung des Mindestlohns auf offene Stellen und damit verbundene Friktionen im Matching-Prozess ausgewirkt hat. Die Analyse basiert auf administrativen Vakanzdaten und Erwerbsbiographien. Die Analyse erfolgt auf der Berufsebenen für den Zeitraum 2013–2019 und nutzt ein Differenz-von-Differenzen-Design. Die Ergebnisse zeigen, dass die Anzahl neu gemeldeter Stellen durch die Mindestlohneinführung insgesamt nicht zurückging. Jedoch stieg der Anteil stornierter Vakanzen um 4–9 Prozent, und die Dauer erfolgreicher Besetzungsprozesse erhöhte sich um 5–6 Prozent. Dies deutet auf verstärkte Such- und Matchingfriktionen hin, etwa durch höhere Einstellungsstandards oder reduzierte berufliche Mobilität. Ergänzende Analysen zeigen geringere Übergänge zwischen Arbeitgebern, insbesondere bei Berufswechseln. Somit wird deutlich, dass die Mindestlohneinführung zwar nur geringe Auswirkungen auf die Beschäftigung hatte, aber dennoch Matchingprozesse erheblich beeinflusst hat. Kapitel 3 Dieses Kapitel wechselt die Perspektive und untersucht, wie zunehmende Arbeitsmarktanspannung – gemessen als Verhältnis von offenen Stellen zu Arbeitssuchenden – die Lohnentwicklung beeinflusst hat. Mithilfe eines Leave-One-Out-Instruments wird der kausale Effekt lokaler Arbeitsmarktanspannung in beruflichen Arbeitsmärkten auf Löhne geschätzt. Die Ergebnisse zeigen moderate, aber signifikant positive Lohneffekte, die etwa 7–19 Prozent des realen Lohnwachstums in Deutschland zwischen 2012 und 2022 erklären. Besonders stark profitieren neu Eingestellte, Hochqualifizierte, Beschäftigte im Dienstleistungssektor und Arbeitnehmer in Ostdeutschland. Zudem steigt der Lohn in Niedriglohnunternehmen überdurchschnittlich stark, was auf eine Verringerung der Lohnungleichheit hindeutet. Im Gesamtfazit werden die Erkenntnisse der drei Studien zusammengeführt. Die Arbeit zeigt, wie institutionelle Eingriffe wie der Mindestlohn einerseits Löhne anheben, gleichzeitig aber neue Friktionen erzeugen können. Andererseits können veränderte Marktbedingungen auch ohne staatliche Eingriffe Löhne steigern – wie etwa bei hoher Arbeitsmarktanspannung. Methodisch hebt die Dissertation die Bedeutung administrativer Mikrodaten und robuster kausaler Analyseverfahren in der Arbeitsmarktforschung hervor." (Autorenreferat, IAB-Doku)

Zitatform

Cai, Xiaoming, Pieter Gautier & Ronald Wolthoff (2025): Search, Screening, and Sorting. In: American Economic Journal. Macroeconomics, Jg. 17, H. 3, S. 205-236. DOI:10.1257/mac.20240026

Abstract

"We examine how search frictions impact labor market sorting by constructing a model consistent with evidence that employers interview a subset of a pool of applicants. We derive necessary and sufficient conditions for sorting in applications and matches. Positive sorting is obtained when production complementarities outweigh a counterforce measured by a (novel) quality-quantity elasticity. Interestingly, the threshold for the complementarities depends on the fraction of high-type workers and can be increasing in the number of interviews. Our model shows how policies like Ban the Box can backfire because when screening workers becomes harder, firms may discourage certain workers from applying." (Author's abstract, IAB-Doku) ((en))

Zitatform

Caldwell, Sydnee, Ingrid Haegele & Jörg Heining (2025): Firm Pay and Worker Search. (IAB-Discussion Paper 04/2025), Nürnberg, 141 S. DOI:10.48720/IAB.DP.2504

Abstract

"Ob und wie Arbeitnehmer am Arbeitsplatz suchen, hängt von ihren Vorstellungen über die Bezahlung und die Arbeitsbedingungen in anderen Unternehmen ab. Dennoch ist wenig darüber bekannt, wie viel Arbeitnehmer tatsächlich über die Arbeitsentgelte außerhalb ihrer aktuellen Beschäftigung Bescheid wissen. Wir nutzen eine groß angelegte Umfrage unter deutschen Vollzeitbeschäftigten, welche mit Sozialversicherungsdaten verknüpft wurde, um Gehaltserwartungen und Präferenzen gegenüber bestimmten externen Unternehmen zu ermitteln. Arbeitnehmer glauben, dass sie mit erheblicher Heterogenität hinsichtlich der Vergütung bei anderen Unternehmen konfrontiert sind und richten ihre Suche nach einem neuen Arbeitsplatz auf Unternehmen aus, von denen sie ausgehen, dass diese mehr bezahlen. Die von den Arbeitnehmern erwarteten unternehmensspezifischen Lohnaufschläge korrelieren sowohl stark mit den Vergütungsschemata, die sich anhand von administrativen Daten zeigen, als auch mit der Würdigung von firmenspezifischer Annehmlichkeiten. Die meisten Arbeiter sind auch bei einer erheblichen Erhöhung des Gehalts nicht bereit, sich einen neuen Job zu suchen – oder ihr derzeitiges Unternehmen zu verlassen. Die Kosten eines Jobwechsel betragen zwischen 7 und 18 Prozent des Jahreslohns eines Arbeitnehmers. Die Zugehörigkeit zu einem Arbeitgeber variiert je nach Arbeitgeber und kann nicht anhand von Unterschieden in firmenspezifischen Annehmlichkeiten oder den Kosten des Jobwechsels erklärt werden." (Autorenreferat, IAB-Doku)

Zitatform

Carlini, Giacomo (2025): Essays in Macroeconomics and Labor Economics. 147 S.

Abstract

"The first chapter investigates why assortative matching between workers and firms is stronger in large cities than in small cities. I develop a search and matching model with heterogeneous workers and firms to examine how worker composition and labor market frictions affect sorting. Calibrating the model to German employer-employee data, I find that matching efficiency is key to explaining differences in assortative matching across cities. This effect is amplified by a more dispersed worker productivity dispersion. The model shows that around 5% of the GDP gap between large and small cities is attributable to differences in assortative matching, underscoring the role of local labor market frictions and productivity distributions in spatial inequality. The second chapter explores how task-biased technological adoption affects GDP gaps across countries. We introduce a country-specific measure of task intensity and document that as GDP increases, routine work declines while cognitive work rises. Moreover, differences in task content within occupations explain over half of the cross-country differences in routine work. Using a production framework where technology is task-specific and occupations are aggregates of tasks, we estimate task-specific productivities across countries. A counterfactual exercise suggests that reducing dispersion in task-biased technology adoption could shrink the average GDP gap with the United States by 25%. The third chapter examines sectoral labor productivity growth in the U.S. over 50 years, highlighting routine- and skill-biased technical change. I show that routine labor productivity has grown fastest, with skill-biased technical change benefiting skilled workers while unskilled productivity declined, especially in services. Finally, to disentangle the role of different labor-augmenting technological change, I extend the framework to account for heterogeneity in both occupations and skills." (Author's abstract, IAB-Doku) ((en))

Zitatform

Corradini, Carlo, David Morris & Enrico Vanino (2025): Marshallian agglomeration, labour pooling and skills matching. In: Cambridge Journal of Economics, Jg. 49, H. 3, S. 527-557. DOI:10.1093/cje/beaf010

Abstract

"Better skills matching has long been proposed as one of the key advantages of agglomeration economies. Yet, support for this improved matching has remained largely founded upon indirect proxies for skills such as wages and education. This paper contributes to the literature by offering novel empirical evidence on the relationship between specific measures of localised skills deficiencies and agglomeration economies, in the form of industrial density. Developing an instrumental variable approach and controlling for unobserved heterogeneity and other region-industry idiosyncratic effects across a panel dataset for the period 2009–2019 in England and Wales, our analysis reveals a positive effect of agglomeration economies in reducing both skills gaps within the employed workforce and skills shortages in the labour market external to the firm. We consider these findings in the context of persistent regional imbalances and the importance of strengthening skills provision within current regional industrial strategies." (Author's abstract, IAB-Doku) ((en))

Zitatform

Garibaldi, Pietro, Pedro Gomes & Thepthida Sopraseuth (2025): Output costs of education and skill mismatch in OECD countries. In: Economics Letters, Jg. 250. DOI:10.1016/j.econlet.2025.112278

Abstract

"We quantify the output costs of education and skills mismatch for 17 OECD economies, using a calibrated model of vertical mismatch. Eliminating the frictions generating mismatch would raise output by 3% to 4% on average, varying between 0.5% to 9% across countries. Although the education and skill mismatch measures are constructed using different methods and differ in size, the output costs are similar between the two measures." (Author's abstract, IAB-Doku, © 2025 The Authors. Published by Elsevier B.V.) ((en))

Zitatform

Kline, Patrick (2025): Labor Market Monopsony: Fundamentals and Frontiers. (RF Berlin - CReAM Discussion Paper Series 2025,36), Berlin, 82 S.

Abstract

"This chapter reviews the theory of monopsonistic wage setting, its empirical implications, and some puzzles the framework has struggled to explain. We begin by examining the fundamentals of monopsonistic wage determination. The core of the theory is a mapping from the distribution of worker outside options to wages. We study non-parametric shape restrictions that ensure this mapping is unique. Building on these results, we introduce a menu of tractable parametrizations of labor supply to the firm, some of which are shown to emerge naturally from equilibrium search models. Next, we review why wage markdowns do not necessarily signal inefficiency and discuss some criteria for assessing misallocation in a monopsony model with search frictions. Turning to the model’s empirical implications, we examine how the magnitude of productivity-wage passthrough depends on the super-elasticity of labor supply to the firm and establish that compensating differentials for firm amenities depend on the curvature of the outside option distribution. We show that firm-specific shifts in either productivity or amenities can be used as instruments to identify labor supply elasticities and review strategies for estimating non-constant elasticities. We then consider extensions of the basic model involving third-degree wage discrimination and examine their ability to rationalize patterns of worker-firm sorting. Monopsony models traditionally assume that firms commit to posted wages. Relaxing this assumption, we develop a connection between the first-order conditions of the monopsony model and models of bargaining with incomplete information. These models explain why bilateral inefficiencies may persist in the presence of negotiation, yield predictions about the response of within-firm wage dispersion to productivity shocks, and suggest reasons why some productivity shifters may not constitute excludable instruments. Next, we endogenize productivity by allowing for efficiency wages, non-constant returns to scale, and price-cost markups. Empirical monopsony estimates often suggest that firms enjoy implausibly large profit margins. We argue that allowing for non-constant labor supply elasticities and firm adjustment costs can potentially resolve this difficulty. Finally, we review why the strong passthrough of minimum wages to product prices presents a challenging puzzle for standard monopsony models and discuss potential reconciliations to this puzzle involving firm heterogeneity, quality upgrading, and lumpy price adjustment." (Author's abstract, IAB-Doku) ((en))

Zitatform

Lalé, Etienne (2025): Search and multiple jobholding. In: Economic Theory, Jg. 80, H. 3, S. 891-939. DOI:10.1007/s00199-025-01647-3

Abstract

"This paper develops an equilibrium model of the labor market that incorporates hours worked, off- and on-the-job search, and both single and multiple jobholders. Central to the model’s mechanism is that taking on a second job ties the worker to her primary employer, while simultaneously providing the worker with a stronger outside option when bargaining with the secondary employer. The model quantitatively accounts for both the incidence of multiple jobholding and worker flows in and out of second jobs. It also sheds light on how multiple jobholding shapes outcomes that are typically the focus of search models. Multiple jobholding has opposing effects on job-to-job transitions, which largely offset each other. At the same time, the option of holding second jobs extends the survival of a worker’s main job, thereby reducing job separations and increasing the employment rate. These findings have significant implications for calibrating standard search models that ignore multiple jobholding." (Author's abstract, IAB-Doku) ((en))

Zitatform

Lisi, Gaetano (2025): Homeownership and (un)employment: Search theory and empirical evidence from a system GMM. In: Economics Bulletin, Jg. 45, H. 4, S. 1723-1734.

Abstract

"This paper suggests that the sign of the relation between homeownership and (un)employment changes according to both the type of homeowner and the market considered. In the housing market, employment positively affects homeownership with a mortgage (home search), whereas, in the labour market, outright homeownership negatively affects employment (job search). A panel analysis (on 27 European countries for the period 2014-2023) confirms the theoretical hypotheses. An augmented Generalized Method of Moments (GMM) version, known as “system GMM”, is used to tackle endogeneity." (Author's abstract, IAB-Doku) ((en))

Zitatform

Manning, Alan (2025): The Immobile Incumbent Problem in a Model of Short-Term Wage-Posting. In: German Economic Review, Jg. 26, H. 4, S. 315-360. DOI:10.1515/ger-2024-0127

Abstract

"This paper takes the canonical Burdett-Mortensen model of wage-posting and relaxes the assumption that wages are set once-for-all, instead assuming they can only be committed one period at a time. It derives a closed-form solution for a steady-state Markov Rank-Preserving Equilibrium and shows how this relates to the canonical model and performs some comparative statics on it. But it is shown that a Rank-Preserving Equilibrium may fail to exist because employers have more monopsony power over existing workers than new recruits and that this non-existence can be a problem for plausible parameter values. It is shown how a Rank-Inverting Equilibrium may exist. It is argued that this problem is likely to occur in a wide range of search models." (Author's abstract, IAB-Doku) ((en))

Zitatform

Naraidoo, Ruthira & Juan Paez-Farrell (2025): Business cycle models with labour market frictions: the role of the matching function. (Sheffield economic research paper series / The University of Sheffield, Department of Economics 2025006), Sheffield, 25 S.

Abstract

"Standard business cycle models with search and matching frictions in the labour market increasingly rely on the assumption that firms face hiring, as opposed to, search costs in recruiting workers. We show that although this modification im-proves the model's empirical performance, it causes the matching function to play no role in macroeconomic dynamics. Assuming both costs can overcome this short-coming but for reasonable parameter values it implies that matching efficiency shocks have no effects." (Author's abstract, IAB-Doku) ((en))

Zitatform

Platonov, Konstantin (2025): Post-pandemic recovery: Search and matching, market power, and endogenous labor demand. In: Economic Modelling, Jg. 151. DOI:10.1016/j.econmod.2025.107183

Abstract

"Following the COVID-19 pandemic, United States (US) output rebounded quickly, labor productivity rose above pre-pandemic levels, profit rates increased, and the labor market tightened, all despite high unemployment. These observations can be reconciled in a search and matching model of the labor market with two new assumptions of strong firm market power and endogenous labor demand. Market power encourages firm entry when prices rise, while endogenous labor demand enables firms to adapt to shocks rather than shut down. Two regimes arise: one with weak market power, representing the pre-pandemic era and another with strong market power, explaining the post-pandemic recovery. Under strong market power, firm entry drives recovery following recessions, the labor market becomes tight, wages and producer prices rise, and the average firm size shrinks, which is consistent with the post-pandemic data. This study demonstrates how a typical business cycle can be reconciled with US post-pandemic recovery within a unified model, highlighting the non-trivial role of firms’ market power in shaping macroeconomic outcomes." (Author's abstract, IAB-Doku, © 2025 The Author. Published by Elsevier B.V.) ((en))

Zitatform

Rendon, Silvio (2025): Testing for wage-specific search intensity. In: Journal for labour market research, Jg. 59. DOI:10.1186/s12651-024-00389-4

Abstract

"Most job search intensity models assume uniform search effort across all potential wage offers. I depart from this conventional assumption by proposing that agents allocate wage-specific search intensity, strategically avoiding effort on low-paying, unacceptable jobs or high-paying, improbable ones. This alternative model generates wage distributions at acceptance that differ markedly from the truncated distributions typical of models with constant arrival rates for wage offers. I leverage these distinct empirical predictions to develop two new nonparametric tests, applied to NLSY97 data, both of which reject the hypothesis of constant search intensity across wages. Furthermore, I estimate the structural parameters identifiable in each model, revealing that wage-specific search leads to greater total search effort, faster transitions into the upper tail of the wage distribution, and ultimately higher accepted wages—more than a 25% increase following unemployment. For low wages, the classic random search model delivers a fair replication of the actual data, but for higher wages targeted search is better. Wage-specific search suggests that job seekers not only need to search more, but also search better. This insight has important implications for employment policy, particularly in promoting job search literacy among the unemployed." (Author's abstract, IAB-Doku) ((en))

Zitatform

Sharma, Prateek (2025): Job market signalling: game theory and bidding strategies. In: Applied Economics Letters, S. 1-5. DOI:10.1080/13504851.2025.2570861

Zitatform

Smith, Eric (2025): On-the-job wage dynamics. In: Journal of Economic Theory, Jg. 224. DOI:10.1016/j.jet.2024.105953

Abstract

"This paper assesses wage setting and wage dynamics in a search and matching framework where (i) workers and firms on occasion can meet multilaterally; (ii) workers can recall previous encounters with firms; and (iii) firms cannot commit to future wages and workers cannot commit to not searching in the future. The resulting progression of wages (from firms paying just enough to keep their workers) yields a compensation structure consistent with well established but difficult to reconcile observations on pay dynamics within jobs at firms. Along with wage tenure effects, serial correlation in wage changes and wage growth are negatively correlated with initial wages." (Author's abstract, IAB-Doku, © 2025 The Author. Published by Elsevier Inc.) ((en))

Zitatform

Tran Nhat, Diana & Timm Teubner (2025): Expectation vs. reality: How stereotypes and expectation disconfirmation affect job evaluations in online labor markets. In: PLoS ONE, Jg. 20, H. 11. DOI:10.1371/journal.pone.0334630

Abstract

"In online labor markets, reputation determines both job opportunities and pay and even small disparities can translate into significant economic differences. While gender-related bias in reputational metrics such as likes, reviews, and ratings has been empirically documented, the mechanisms through which they arise remain insufficiently understood. This study presents results from an online experiment, varying workers’ gender, domain, and performance, to investigate how expectations about workers are formed and how they affect subsequent evaluations. Drawing on Expectation Disconfirmation Theory and Role Congruity Theory, we test whether the effect of disconfirmation (i.e., discrepancies between expected and actual performance) on evaluations varies with congruity (i.e., stereotypical fit between gender and domain). Contrary to our hypothesis, workers in congruent settings do not elicit higher expectations than those in incongruent roles. Similarly, the effect of positive and negative disconfirmation does not vary with congruity. However, exploratory analyses suggest that congruity does affect expectations and evaluations when individuals hold strong gender-domain associations. In case of stereotypical associations, individuals expect higher performance of workers in congruent domains and evaluate them more leniently if they fail to meet expectations. Our findings contribute to understanding why identical performances might be judged differently depending on gender-domain associations, expectations, and disconfirmation." (Author's abstract, IAB-Doku) ((en))

Zitatform

Venables, Anthony J. (2025): Location choice when the number of jobs matters: Matching in spatial equilibrium. (CEP discussion paper / Centre for Economic Performance 2087), London, 22 S.

Abstract

"The idea that people want to go to where the jobs are is intuitive yet is absent from the standard quantitative spatial modelling approach in which location choices are guided by prices, without reference to quantities (the number of jobs in a place). The purpose of this paper is to fill this gap by making jobs, as well as places, the objects of household choice. This involves minor change to the modelling approach used in the literature and provides a simple description of labour market matching. Similar modification of the modelling of firms’ location choices captures the idea that these are shaped by both wage costs and the availability of workers with appropriate skill. These modifications yield powerful agglomeration forces, as workers’ location choices become positively influenced by the number of jobs in a place, and firms’ decision are shaped by the number of workers with appropriate skills. Results are established analytically and in a regional model in which the equilibrium distributions of workers and sectors are demonstrated." (Author's abstract, IAB-Doku) ((en))

Zitatform

Wee, Shu Lin (2025): Optimal unemployment insurance with multiple applications. In: Journal of monetary economics, Jg. 154. DOI:10.1016/j.jmoneco.2025.103798

Abstract

"This paper examines how unemployment transfers should be allocated over the business cycle. When risk-averse workers can submit multiple applications, the optimal UI policy is countercyclical. In contrast, optimal policy in a standard search model featuring one-to-one matching is procyclical. In the latter, more generous UI during a downturn discourages search effort, dampening job creation. In the former, decreased search effort aids job creation. Because firms cannot coordinate and commit to not making the same worker an offer, lower search effort by reducing the number of applications sent mitigates this coordination friction. This in turn boosts job creation incentives, supporting employment outcomes." (Author's abstract, IAB-Doku, © 2025 The Author. Published by Elsevier B.V.) ((en))

Zitatform

Abbritti, Mirko & Agostino Consolo (2024): Labour market skills, endogenous productivity and business cycles. In: European Economic Review, Jg. 170. DOI:10.1016/j.euroecorev.2024.104873

Abstract

"This paper analyses how labor market heterogeneity affects unemployment, productivity and business cycle dynamics. To this aim, we set up a model with asymmetric search and matching frictions across skilled and unskilled workers, and endogenous productivity through R&D investment and intangible capital accumulation. Skill mismatch and skill-specific labor market institutions have three main effects on business cycles and growth dynamics. First, the relative scarcity of skilled workers increases the natural rate of unemployment and reduces total factor productivity with long-run effects on the growth rate of output. Second, skill heterogeneity in the labor market generates asymmetric outcomes and amplifies measures of employment, wages and consumption inequality. Finally, the model provides important insights for the Phillips and Beveridge curves. Incorporating skill heterogeneity leads to a flattening of the Phillips curve as wages and unemployment respond unevenly across skill types. Also, the model generates sideward shifts of the Beveridge curve following business cycle shocks, with the extent of these shifts depending on the degree of skill heterogeneity." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

Zitatform

Baley, Isaac, Lars Ljungqvist & Thomas J. Sargent (2024): Returns to labour mobility. In: The Economic Journal, Jg. 135, H. 666, S. 430-454. DOI:10.1093/ej/ueae054

Abstract

"Returns to labor mobility have too often escaped the attention they deserve as conduits of important forces in macro-labour models. These returns are shaped by calibrations of productivity processes that use theoretical perspectives and data sources from (i) labour economics and (ii) industrial organization. By investigating earlier prominent studies, we conclude that the focus on firm size dynamics and shocks intermediated through neo-classical production functions in (ii) yields large returns to labor mobility that are robust to parameter perturbations. In contrast, the reliance on statistics in labor economics to calibrate per-worker productivity processes in (i) can give rise to fragilities in the sense that parameter perturbations that generate similar targeted statistics can have very different implications for returns to labor mobility." (Author's abstract, IAB-Doku) ((en))

Zitatform

Behaghel, Luc, Sofia Dromundo, Marc Gurgand, Yagan Hazard & Thomas Zuber (2024): The Potential of Recommender Systems for Directing Job Search: A Large-Scale Experiment. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16781), Bonn, 65 S.

Abstract

"We analyze the employment effects of directing job seekers' applications toward establishments likely to recruit. We run a two-sided randomization design involving about 800,000 job seekers and 40,000 establishments, based on an empirical model that recommends each job seeker to firms so as to maximize total potential employment. Our intervention induces a 1% increase in job finding rates for short term contracts. This impact comes from a targeting effect combining (i) a modest increase in job seekers' applications to the very firms that were recommended to them, and (ii) a high success rate conditional on applying to these firms. Indeed, the success rate of job seekers' applications varies considerably across firms: the efficiency of applications sent to recommended firms is 2.7 times higher than the efficiency of applications to the average firm. This suggests that there can be substantial gains from better targeting job search, leveraging firm-level heterogeneity." (Author's abstract, IAB-Doku) ((en))

Zitatform

Belot, Michèle, Xiaoying Liu & Vaios Triantafyllou (2024): Measuring the quality of a match. In: Labour Economics, Jg. 89. DOI:10.1016/j.labeco.2024.102568

Abstract

"The quality of an employment match is a central concept in labor economics. It is relevant for evaluating the welfare impact of labor market policies, and for our understanding of labor market dynamics. This paper reviews the challenges associated with measuring match quality. We first review measures commonly used in the literature, their advantages, and drawbacks. We then present novel evidence from a survey sample of US employees where alternative measures were collected simultaneously. We show that while some of these measures correlate well, others do not. Finally, we present additional partial evidence on the correlations between measures based on the National Longitudinal Survey of Youth (NLSY79), a substantially larger and nationally representative survey. The takeaway message is a word of caution regarding the interpretation of some of these measures and specific concerns regarding using wages and tenure as indicators of match quality." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

Zitatform

Bernstein, Joshua, Michael Plante, Alexander W. Richter & Nathaniel A. Throckmorton (2024): A Simple Explanation of Countercyclical Uncertainty. In: American Economic Journal. Macroeconomics, Jg. 16, H. 4, S. 143-171. DOI:10.1257/mac.20220134

Abstract

"This paper documents that labor search and matching frictions generate countercyclical uncertainty because the inherent nonlinearity in the flow of new matches makes employment uncertainty increasing in the number of people searching for work. Quantitatively, this mechanism is strong enough to explain uncertainty and real activity dynamics, including their correlation. Through this lens, uncertainty fluctuations are endogenous responses to changes in real activity that neither affect the severity of business cycles nor warrant policy intervention, in contrast with leading theories of the interaction between uncertainty and real activity dynamics." (Author's abstract, IAB-Doku) ((en))

Zitatform

Birchenall, Javier A. (2024): A competitive theory of mismatch. In: Journal of Economic Dynamics and Control, Jg. 168. DOI:10.1016/j.jedc.2024.104996

Abstract

"I study the distributions of unemployment, vacancies, and wages across local labor markets in an economy where workers and jobs are matched and mismatched based on more explicit assumptions and aggregation principles than in the reduced-form aggregate matching-function approach. The endogenous matching process formulated here is flexible and has practical value for applied work. Local and aggregate labor market adjustments to local productivity and aggregate demand shocks reproduce empirical Beveridge and wage curve patterns, offer an alternative perspective on empirical indices of mismatch unemployment, and deliver an endogenous and commonly used reduced-form aggregate matching function." (Author's abstract, IAB-Doku, © 2024 Elsevier B.V. All rights are reserved, including those for text and data mining, AI training, and similar technologies.) ((en))

Zitatform

Bischof, Stephan (2024): Test-based measurement of skill mismatch: a validation of five different measurement approaches using the NEPS. In: Journal for labour market research, Jg. 58. DOI:10.1186/s12651-024-00370-1

Abstract

"Skill mismatch is a key indicator of labour market research that has received significant attention. To date, various approaches of test-based measurement of skill mismatch have been used in research, generating differing results. However, it remains unclear which method is the most valid for measuring skill mismatch. This study provides a comparative validation of five commonly used approaches to test-based measurement of skill mismatches in reading and mathematics to detect the most valid method. Drawing on the 2016 wave of the German National Educational Panel Study (NEPS) Adult Cohort, I find significantly varying distributions for the different measurement approaches, and highly valid skill mismatch measures for the statistical and the mixed approach. Overall, the mixed approach emerges as the most valid method. The findings highlight the critical importance of measurement approaches in skill mismatch research." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

Zitatform

Bossler, Mario & Martin Popp (2024): Labor Demand on a Tight Leash. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16837), Bonn, 99 S.

Abstract

"We develop a labor demand model that encompasses pre-match hiring cost arising from tight labor markets. Through the lens of the model, we study the effect of labor market tightness on firms’ labor demand by applying novel shift-share instruments to the universe of German firms. In line with theory, we find that a doubling in tightness reduces firms’ employment by 5 percent. Taking into account the resulting search externalities, the wage elasticity of firms’ labor demand reduces from -0.7 to -0.5 through reallocation effects. In light of our results, pre-match hiring cost amount to 40 percent of annual wage payments." (Author's abstract, IAB-Doku) ((en))

Zitatform

Bransch, Felix, Samreen Malik & Benedikt Mihm (2024): The cyclicality of on-the-job search. In: Labour Economics, Jg. 87. DOI:10.1016/j.labeco.2024.102517

Abstract

"On-the-job search is increasingly recognized as an important potential driver of labor market dynamics over the business cycle. Using the UK Labor Force Survey, we find robust empirical evidence that on-the-job search is countercyclical and that the cyclical fluctuations have important repercussions for labor market dynamics. We also find that the cyclical pattern is not explained by precautionary search motives but rather appears to be driven by job-ladder-motivated searches. This finding is surprising because, as we confirm, the expected returns to on-the-job search are procyclical. We find evidence that three features of search behavior may contribute to this finding: greater search effort in response to lower job-to-job transition probabilities, a prevalence of non-pecuniary motivated searches that are less affected by lower expected wage gains, and procyclicality in average match quality, which has a significant impact on the search behavior of new hires over the business cycle." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

Zitatform

Braunschweig, Luisa, Wolfgang Dauth & Duncan Roth (2024): Job Mobility and Assortative Matching. (IAB-Discussion Paper 11/2024), Nürnberg, 52 S. DOI:10.48720/IAB.DP.2411

Abstract

"Wir analysieren, wie sich das Matching zwischen Betrieben und Beschäftigten über das Erwerbsleben durch Jobmobilität verändert. Wir nutzen deutsche administrative Daten, die sowohl Informationen über Beschäftigte als auch Betriebe enthalten. Um assortatives Matching zu messen, berechnen wir die Korrelation zwischen zeitkonstanten Lohnkomponenten von Betrieben und Beschäftigten, welche wir aus einer Lohndekomposition im Stil von Abowd/Kramarz/Margolis (1999) ziehen. Zudem benutzen wir ein neues Maß für assortatives Matching, welches auf der Distanz zwischen diesen Lohnkomponenten basiert. Beide Maße zeigen, dass der Grad des assortativen Matchings im Durchschnitt mit jedem weiteren Betriebswechsel ansteigt. Bei Beschäftigten mit einer hohen zeitkonstanten Lohnkomponente kann dies durch Job Ladder Modelle erklärt werden, denn die Beschäftigten bewegen sich zu Firmen mit höheren Lohnkomponenten. Dahingegen sind Beschäftigte mit niedrigerer Lohnkomponente am Anfang des Erwerbslebens in weniger assortativen Matches zu finden, da sie es ebenfalls schaffen, zu Beginn die Job Ladder hinaufzuklettern. Für sie beginnt der Anstieg des assortativen Matchings erst nach dem dritten Job, wenn sie von der Job Ladder fallen. Die Entwicklung des assortativen Matchings ist zudem relevant für die Lohnungleichheit im Lebensverlauf. Wir zeigen, dass der Anstieg des assortativen Matchings circa 25 Prozent des Anstiegs der Lohnungleichheit im Lebensverlauf erklären kann." (Autorenreferat, IAB-Doku)

Zitatform

Cowgill, Bo, Jonathan M. V. Davis, B. Pablo Montagnes & Patryk Perkowski (2024): Stable Matching on the Job? Theory and Evidence on Internal Talent Markets. (CESifo working paper 11120), München, 47, XLIII S.

Abstract

"A principal often needs to match agents to perform coordinated tasks, but agents can quit or slack off if they dislike their match. We study two prevalent approaches for matching within organizations: Centralized assignment by firm leaders and self-organization through market-like mechanisms. We provide a formal model of the strengths and weaknesses of both methods under different settings, incentives, and production technologies. The model highlights tradeoffs between match-specific productivity and job satisfaction. We then measure these tradeoffs with data from a large organization’s internal talent market. Firm-dictated matches are 33% more valuable than randomly assigned matches within job categories (using the firm’s preferred metric of quality). By contrast, preference-based matches (using deferred acceptance) are only 5% better than random but are ranked (on average) about 38 percentiles higher by the workforce. The selforganized match is positively assortative and helps workers grow new skills; the firm’s preferred match is negatively assortative and harvests existing expertise." (Author's abstract, IAB-Doku) ((en))

Zitatform

Cubas, German, Pedro Silos & Vesa Soini (2024): Risk and the allocation of talent in the Roy model. In: Economics Letters, Jg. 236. DOI:10.1016/j.econlet.2024.111623

Abstract

"With risk-averse workers and uninsurable earnings shocks, competitive markets allocate too few workers to risky jobs. Using an equilibrium Roy model with incomplete markets, we show that in competitive equilibrium, risky occupations are inefficiently small and hence talent is misallocated." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

Zitatform

Darougheh, Saman (2024): Occupation-Industry Mismatch in the Cross Section and the Aggregate. In: Journal of Political Economy Macroeconomics, Jg. 2, H. 3, S. 375-408. DOI:10.1086/731536

Abstract

"I define occupations that are employed in more industries as “broader ” occupations. I study the implications of broadness for mismatch of the unemployed and vacancies across occupations and industries. I empirically find that workers in broader occupations are better insured against industry specific shocks. A recent literature has found that mismatch did not significantly contribute to the rise in unemployment during the Great Recession. I build a general equilibrium model that uses occupational broadness as a microfoundation of mismatch. The model uncovers a general equilibrium channel that realigns the strong crosssectional effects of mismatch with its missing aggregate impact. I argue that mismatch across occupations and industries cannot significantly contribute to aggregate unemployment fluctuations" (Author's abstract, IAB-Doku) ((en))

Zitatform

Duffy, John & Brian C. Jenkins (2024): Search, unemployment, and the Beveridge curve: Experimental evidence. In: Labour Economics, Jg. 87. DOI:10.1016/j.labeco.2024.102518

Abstract

"We report on a laboratory experiment testing the predictions of the Diamond–Mortensen–Pissarides (DMP) search-and-matching model, which is a workhorse, decentralized model of unemployment and the labor market. We focus on the job vacancy posting problem that firms face in the DMP model. We explore the model’s comparative statics predictions concerning variations in the separation rate, the vacancy posting cost, and the firm’s surplus earned per employee. Across all treatments, we find strong evidence for an inverse relationship between vacancies and unemployment, consistent with the Beveridge curve. We also find that the results of our various comparative statics exercises are in-line with the predictions of the theory." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

Zitatform

Eeckhout, Jan & Alireza Sepahsalari (2024): The Effect of Wealth on Worker Productivity. In: The Review of Economic Studies, Jg. 91, H. 3, S. 1584-1633. DOI:10.1093/restud/rdad059

Abstract

"We propose a theory that analyzes how a workers’ asset holdings affect their job productivity. In a labor market with uninsurable risk, workers choose to direct their job search trading off productivity and wages against unemployment risk. Workers with low asset holdings have a precautionary job search motive, they direct their search to low productivity jobs because those offer a low risk at the cost of low productivity and a low wage. Our main theoretical contribution shows that the presence of consumption smoothing can reconcile the directed search model with negative duration-dependence on wages, a robust empirical regularity that the canonical directed search model cannot rationalize. We calibrate the infinite horizon economy and find this mechanism to be quantitatively important. We evaluate a tax financed unemployment insurance (UI) scheme and analyze how it affects welfare. Aggregate welfare is inverted U-shaped in benefits: the insurance effect UI dominates the incentive effects for low levels of benefits and vice versa for high benefits. In addition, when UI increases, total production falls in the economy while worker productivity increases." (Author's abstract, IAB-Doku) ((en))

Zitatform

Fongoni, Marco (2024): Asymmetric Reciprocity and the Cyclical Behavior of Wages, Effort, and Job Creation. In: American Economic Journal. Macroeconomics, Jg. 16, H. 3, S. 52-89. DOI:10.1257/mac.20200321

Abstract

"This paper develops a search and matching framework in which workers are characterized by asymmetric reference-dependent reciprocity and firms set wages by considering the effect that these can have on workers’ effort and, therefore, on output. The cyclical response ofeffort to wage changes can considerably amplify shocks, independently of the cyclicality of the hiring wage, which becomes irrelevant for unemployment volatility, and firms’ expectations of downward wage rigidity in existing jobs increases the volatility of job creation. The model is consistent with evidence on hiring and incumbents’ wage cyclicality, and provides novel predictions on the dynamics of effort." (Author's abstract, IAB-Doku) ((en))