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The Replacement of the UV-Curve with a New Measure of Hiring Efficiency

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  • Schager, Nils Henrik

    (Research Institute of Industrial Economics (IFN))

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    Abstract

    In this paper we show that changes in the position of the UV-Curve do not unambiguously reflect changes in labour market adjustment ability. In fact, the UV-Curve is displaced not only when hiring efficiency changes but also when the volume of hiring changes. To identify changes in hiring efficiency, we should use the relation between either the duration of vacancies and the stock of unemployment or, alternatively, the duration of unemployment and the stock of vacancies. These measures are applied to Swedish data and produce interesting new evidence on the hiring efficiency of the labour market in Sweden.

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    File URL: http://www.ifn.se/wfiles/wp/wp149.pdf
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    Bibliographic Info

    Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 149.

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    Length: 57 pages
    Date of creation: Dec 1985
    Date of revision:
    Handle: RePEc:hhs:iuiwop:0149

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    Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
    Phone: +46 8 665 4500
    Fax: +46 8 665 4599
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    Web page: http://www.ifn.se/
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    Related research

    Keywords: UV curve; supply and demand of labour; hiring efficiency;

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    References

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    1. Barron, John M, 1975. "Search in the Labor Market and the Duration of Unemployment: Some Empirical Evidence," American Economic Review, American Economic Association, vol. 65(5), pages 934-42, December.
    2. Hansen, Bent, 1970. "Excess Demand, Unemployment, Vacancies, and Wages," The Quarterly Journal of Economics, MIT Press, vol. 84(1), pages 1-23, February.
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    Cited by:
    1. Eliasson, Gunnar & Lindberg, Thomas, 1986. "Economic Growth and the Dynamics of Wage Determination: A Micro Simulation Study of the Stability Consequences of Deficient Variation in Factor Prices and Micro Structures," Working Paper Series 170, Research Institute of Industrial Economics, revised Aug 1988.

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