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Do Employers Respond to the Costs of Continued Search?

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  • Vera Brenčič

Abstract

An analysis of US and Slovenian vacancy data sets reveals that an employer who is searching to fill a job vacancy is more likely to fill the vacancy by hiring an under-qualified worker when the search costs are higher; when, at the start of the search, the employer has less time to search at low cost; and during the week following an increase in search costs. These are interesting findings not only about the effects of search costs on employers' hiring decisions, but also because they suggest that search frictions in the two labour markets may be considerable. Copyright (c) Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2009.

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.

Volume (Year): 72 (2010)
Issue (Month): 2 (04)
Pages: 221-245

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Handle: RePEc:bla:obuest:v:72:y:2010:i:2:p:221-245

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Cited by:
  1. Paul Oyer & Scott Schaefer, 2010. "Personnel Economics: Hiring and Incentives," NBER Working Papers 15977, National Bureau of Economic Research, Inc.

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