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Unemployment and Vacancies

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  • Farm, Ante

    ()
    (Swedish Institute for Social Research, Stockholm University)

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    Abstract

    How can vacancy statistics be used to measure friction in job matching and the effects of friction on unemployment? First, measure deviations from instantaneous hirings by the average duration of recruitment as measured by the number of job vacancies divided by the number of hirings per month. Second, measure direct effects of recruitment times on employment by measuring unfilled jobs, defined as unoccupied job vacancies which are available immediately. Third, measure indirect effects of recruitment times on employment by estimating first the effect of recruitment times on product prices and then the effect of a price change on sales, production and employment. Fourth, measure ‘search ineffectiveness’ with potential effects on the NAIRU by the rate of unfilled jobs.

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    Bibliographic Info

    Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 8/2009.

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    Length: 37 pages
    Date of creation: 20 Nov 2009
    Date of revision:
    Handle: RePEc:hhs:sofiwp:2009_008

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    Related research

    Keywords: Unemployment; vacancies; matching function; labour demand; friction;

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