How workers and firms meet in the labor market and why it matters

Abstract

"Most firms match with workers through job postings, networks of personal contacts, or the public employment agency. This column investigates the effects of search channels on labor market outcomes in Germany. Low-wage firms and low-wage workers are more likely to match via networks or the public agency, while high-wage firms and high-wage workers succeed more often via job postings. Because search channels connect workers and firms at different rungs of the wage distribution, matching technologies matter not only for individual job search outcomes, but also for aggregate employment, productivity, and wage inequality." (Author's abstract, IAB-Doku, © VOXEU) ((en))

Cite article

Carillo-Tudela, C., Kaas, L. & Lochner, B. (2024): How workers and firms meet in the labor market and why it matters. (VoxEU columns / Centre for Economic Policy Research), London, o. p..