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Measuring the effect of matching problems on unemployment

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  • Ante FARM

Abstract

This article shows how matching problems reduce employment figures – and hence also raise those for unemployment – by creating a gap between labour demand and employment. It also shows how this gap can be measured by unfilled jobs (unmet demand) as distinct from job vacancies (recruitment processes) and reports results from the Swedish vacancy survey which measures both. In fact, while a shift of the matching function indicating longer recruitment times suggests increasing matching problems, this can only be verified by measuring unfilled jobs, which also quantifies the effect on unemployment.

Suggested Citation

  • Ante FARM, 2020. "Measuring the effect of matching problems on unemployment," International Labour Review, International Labour Organization, vol. 159(2), pages 243-258, June.
    • Handle: RePEc:bla:intlab:v:159:y:2020:i:2:p:243-258
    DOI: 10.1111/ilr.12095
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    References listed on IDEAS

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    1. Charles Holt & Martin David, 1966. "The Concept of Job Vacancies in a Dynamic Theory of the Labor Market," NBER Chapters, in: The Measurement and Interpretation of Job Vacancies, pages 73-110, National Bureau of Economic Research, Inc.
    2. van Ours, Jan & Ridder, Geert, 1992. "Vacancies and the Recruitment of New Employees," Journal of Labor Economics, University of Chicago Press, vol. 10(2), pages 138-155, April.
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    5. Barron, John M & Bishop, John, 1985. "Extensive Search, Intensive Search, and Hiring Costs: New Evidence on Employer Hiring Activity," Economic Inquiry, Western Economic Association International, vol. 23(3), pages 363-382, July.
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    7. Steven J. Davis & R. Jason Faberman & John C. Haltiwanger, 2013. "The Establishment-Level Behavior of Vacancies and Hiring," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(2), pages 581-622.
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    9. Farm, Ante, 2003. "Defining and Measuring Unmet Labour Demand," Working Paper Series 1/2003, Stockholm University, Swedish Institute for Social Research.
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