Testing theories of labour market matching
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.Download Info
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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 209.Length:
Date of creation: 04 Jun 2003
Date of revision:
Handle: RePEc:ecj:ac2003:209
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Web page: http://www.res.org.uk/society/annualconf.asp
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Related research
Keywords: two-sided search; random matching; hazards;Other versions of this item:
- M Andrews & S Bradley & D Stott & R Upward, 2003. "Testing Theories of Labour Market Matching," The School of Economics Discussion Paper Series 0318, Economics, The University of Manchester.
- Martyn Andrews & Steve Bradley & Richard Upward, 2006. "Testing theories of labour market matching," The School of Economics Discussion Paper Series 0630, Economics, The University of Manchester.
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Coles, Melvyn & Petrongolo, Barbara, 2003.
"A Test between Unemployment Theories Using Matching Data,"
IZA Discussion Papers
723, Institute for the Study of Labor (IZA).
- Melvyn Coles & Barbara Petrongolo, 2003. "A Test Between Unemployment Theories Using Matching Data," CEP Discussion Papers dp0570, Centre for Economic Performance, LSE.
- Coles, Melvyn G & Petrongolo, Barbara, 2002. "A Test Between Unemployment Theories Using Matching Data," CEPR Discussion Papers 3241, C.E.P.R. Discussion Papers.
- Barbara Petrongolo & Christopher A. Pissarides, 2000.
"Looking Into the Black Box: A Survey of the Matching Function,"
CEP Discussion Papers
dp0470, Centre for Economic Performance, LSE.
- Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
- Petrongolo, Barbara & Pissarides, Christopher, 2000. "Looking Into The Black Box: A Survey Of The Matching Function," CEPR Discussion Papers 2409, C.E.P.R. Discussion Papers.
- Heckman, James J. & Singer, Burton, 1984. "Econometric duration analysis," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 63-132.
- Kenneth Burdett & Randall Wright, 1994.
"Two-sided search,"
Staff Report
169, Federal Reserve Bank of Minneapolis.
- Ken Burdett & Randall Wright, 1998. "Two-Sided Search with Nontransferable Utility," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 220-245, January.
- Broersma, Lourens & Van Ours, Jan C., 1999. "Job searchers, job matches and the elasticity of matching," Labour Economics, Elsevier, vol. 6(1), pages 77-93, March.
- Ours, J.C. van & Broersma, L., 1999. "Job searchers, job matches and the elasticity of matching," Open Access publications from Tilburg University urn:nbn:nl:ui:12-80319, Tilburg University.
- Coles, Melvyn G & Smith, Eric, 1994.
"Marketplaces and Matching,"
CEPR Discussion Papers
1048, C.E.P.R. Discussion Papers.
- Coles, Melvyn G & Smith, Eric, 1998. "Marketplaces and Matching," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 239-54, February.
- Burdett, Kenneth & Coles, Melvyn G, 1999. "Long-Term Partnership Formation: Marriage and Employment," Economic Journal, Royal Economic Society, vol. 109(456), pages F307-34, June.
- 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.
- Burdett, Kenneth & Coles, Melvyn G & van Ours, Jan C, 1994. "Temporal Aggregation Bias in Stock-Flow Models," CEPR Discussion Papers 967, C.E.P.R. Discussion Papers.
- Gregg, Paul & Petrongolo, Barbara, 2005. "Stock-flow matching and the performance of the labor market," European Economic Review, Elsevier, vol. 49(8), pages 1987-2011, November.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- M Andrews & S Bradley & D Stott & R Upward, 2003.
"Why do Job-Seeker and Vacancy Hazards Slope Downwards? Estimating a Two-Sided Search Model of the Labour Market,"
The School of Economics Discussion Paper Series
0320, Economics, The University of Manchester.
- Martyn Andrews & Steve Bradley & Dave Stott & Richard Upward, 2006. "Why do job-seeker and vacancy hazards slope downwards? Estimating a two-sidedsearch model of the labour market," The School of Economics Discussion Paper Series 0635, Economics, The University of Manchester.
- Kuo, Mien-Yun & Smith, Eric, 2009. "Marketplace matching in Britain: Evidence from individual unemployment spells," Labour Economics, Elsevier, vol. 16(1), pages 37-46, January.
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