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Vacancy Duration, Wage Offers, and Job Requirements - Pre-Match Data Evidence

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  • Chen, Longhwa

    (Aletheia University)

  • Eriksson, Tor

    ()
    (Department of Economics, Aarhus School of Business)

Abstract

Besides wage offers, credentials like education, work experience and skill requirements are key screening tools for firms in their recruitment of new employees. This paper contributes some new evidence to a relatively tiny literature on firms’ recruitment behaviour. In particular, our analysis is concerned with how vacancy durations vary with firms’ minimum wage offers and minimum job requirements (regarding education, skills, age, gender and earlier work experience). The empirical analysis is based on ten employer surveys carried out by the DGBAS on Taiwan during the period 1996-2006. We estimate logistic discrete hazard models with a rich set of job and firm characteristics as explanatory variables. The results show that vacancies associated with higher wage offers take, ceteris paribus, longer to be filled. The impact of firms’ wage offers and credential requirements does not vary over the business cycle. However, firms vary their skills requirements over the business cycle: our empirical analysis shows that, for a given wage offer, requirements are stricter in recessions and downturns. Separating between reasons for posting vacancies turned out important in explaining differences in vacancy durations. The duration of vacancies due to regular turnover and changing business cycle condition are less affected by skill requirements than that of other vacant jobs.

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File URL: http://www.hha.dk/nat/wper/09-6_tor.pdf
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Bibliographic Info

Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 09-6.

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Length: 51 pages
Date of creation: 15 May 2009
Date of revision:
Handle: RePEc:hhs:aareco:2009_006

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Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
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Keywords: Job vacancies; Recruitment; Wage offers; Job requirements;

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