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Job Searchers, Job Matches and the Elasticity of Matching

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  • Broersma, L.
  • Ours, J.C. van

    (Tilburg University, Center for Economic Research)

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    Abstract

    This paper stresses the importance of a specification of the matching function in which the measure of job matches corresponds to the measure of job searchers. In many empirical studies on the matching function this requirement has not been fulfilled because it is difficult to find information about employed job searchers and job searchers from outside the labour market. In this paper, we specify and estimate matching functions where the flow corresponds to the correct stock. We use several approximations for the stock of non-unemployed job searchers. We find that the estimation results are sensitive to the approximation we use. Our main conclusion is that it is important to account for the behaviour of non-unemployed job searchers since otherwise the estimated parameters of the matching function may be seriously biased.

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    Bibliographic Info

    Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1998-72.

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    Date of creation: 1998
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    Handle: RePEc:dgr:kubcen:199872

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    Web page: http://center.uvt.nl

    Related research

    Keywords: unemployment; vacancies; matching;

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    References

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    1. Ours, J. C. van & Burdett, K. & Coles, M., 1994. "Temporal Aggregation Bias in Stock-Flow Models," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153334, Tilburg University.
    2. Burgess, Simon M., 1994. "Matching models and labour market flows," European Economic Review, Elsevier, vol. 38(3-4), pages 809-816, April.
    3. Pablo Antolín, 1994. "Unemployment flows and vacancies in Spain," Working Papers. Serie EC 1994-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. van Ours, J., 1991. "The Efficiency of the Dutch Labour Market in Matching Unemployment and Vacancies," Open Access publications from Tilburg University urn:nbn:nl:ui:12-142205, Tilburg University.
    5. Christopher A. Pissarides, 1992. "Search Unemployment with on-the-job Search," CEP Discussion Papers dp0074, Centre for Economic Performance, LSE.
    6. Lourens Broersma, 1997. "Competition between employed and unemployed job searchers: is there a difference between the UK and The Netherlands?," Applied Economics Letters, Taylor & Francis Journals, vol. 4(3), pages 199-203.
    7. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, vol. 38(6), pages 1287-1315, June.
    8. Burgess, Simon M, 1993. "A Model of Competition between Unemployed and Employed Job Searchers: An Application to the Unemployment Outflow Rate in Britain," Economic Journal, Royal Economic Society, vol. 103(420), pages 1190-204, September.
    9. van Ours, Jan C., 1995. "An empirical note on employed and unemployed job search," Economics Letters, Elsevier, vol. 49(4), pages 447-452, October.
    10. Ours, J.C. van & Gorter, C., 1994. "Matching Unemployment and Vacancies in Regional Labour Markets; an empirical analysis for the Netherlands," Open Access publications from Tilburg University urn:nbn:nl:ui:12-142169, Tilburg University.
    11. Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 1-76.
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    Cited by:
    1. Jukka Petteri Lahtonen & Sanna-Mari Hynninen, 2005. "Does population density matter in the matching process of heterogeneous job seekers and vacancies?," ERSA conference papers ersa05p438, European Regional Science Association.

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