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Testing theories of labour market matching

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Author Info

  • Upward, Richard

    (University of Nottingham)

  • Martyn Andrews
  • Steve Bradley
  • Dave Stott

Abstract

This paper estimates a model of two-sided search using micro-level data for a well-defined labour market. It examines the assumption of random matching and contrasts it with the stock-flow (or non-random) matching model of Coles and collaborators. Given a dataset of contacts, matches, and complete labour-market histories for both sides of the market, we estimate hazard functions for both (unemployed) job-seekers and vacancies. For job-seekers, the tests adds the stock of new vacancies to a standard job-seeker hazard which itself depends on the stocks of vacancies and unemployed. Our tentative results find very weak evidence of stock-flow matching.

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File URL: http://repec.org/res2003/Upward.pdf
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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 209.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:209

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Web page: http://www.res.org.uk/society/annualconf.asp
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Keywords: two-sided search; random matching; hazards;

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