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Inferring Employer Search Behaviour from Wage Subsidy Participation

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  • Welters, Riccardo
  • Muysken, Joan

Abstract

We introduce a novel way to infer employer search behaviour, through deadweight loss incidence in wage subsidy schemes. Using a data set on British firms participating in such schemes we can distinguish between intensive and extensive employer search. These data also allow us to separate the negative economies of scale effect from the positive monitoring effect of firm size on intensive search costs. Our findings further indicate that 'hours worked' and 'supervisory tasks' increase extensive search costs. Since intensive and extensive search behaviour affect the job find probability of the (long-term) unemployed, our conclusions have significant labour market policy relevance.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 15 (2008)
Issue (Month): 5 (October)
Pages: 844-858

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Handle: RePEc:eee:labeco:v:15:y:2008:i:5:p:844-858

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Long-term unemployment Labour demand Recruitment;

References

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  17. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1987. "Employer Size: The Implications for Search, Training, Capital Investment, Starting Wages, and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 5(1), pages 76-89, January.
  18. Riccardo Welters & Joan Muysken, 2006. "Employer search and employment subsidies," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1435-1448.
  19. Pissarides, Christopher A, 1984. "Search Intensity, Job Advertising, and Efficiency," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 128-43, January.
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Cited by:
  1. Moczall, Andreas, 2013. "Subsidies for substitutes? : New evidence on deadweight loss and substitution effects of a wage subsidy for hard-to-place job-seekers," IAB Discussion Paper 201305, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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