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Vacancy duration and wages

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  • Bassier, Ihsaan
  • Manning, Alan
  • Petrongolo, Barbara

Abstract

We estimate the elasticity of vacancy duration with respect to posted wages, using data from the near-universe of online job adverts in the United Kingdom. Our research design identifies duration elasticities by leveraging firm-level wage policies that are plausibly exogenous to hiring difficulties on specific job vacancies, and control for job and market-level fixed-effects. Wage policies are defined based on external information on pay settlements, or on sharp, internally-defined, firm-level changes. In our preferred specifications, we estimate duration elasticities in the range -3 to -5, which are substantially larger than the few existing estimates.

Suggested Citation

  • Bassier, Ihsaan & Manning, Alan & Petrongolo, Barbara, 2023. "Vacancy duration and wages," LSE Research Online Documents on Economics 121287, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:121287
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    References listed on IDEAS

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    More about this item

    Keywords

    vacancy duration; wages; monopsony; Grant LPIGMANN Number 834455;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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