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The Costs of Hiring Skilled Workers

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  • Marc Blatter

    (Institute of Economics, University of Berne)

  • Samuel Muehlemann

    ()
    (Institute of Economics, University of Berne)

  • Samuel Schenker

    (Institute of Economics, University of Berne)

Abstract

Hiring workers is costly and therefore influences the firm’s labor demand. We make use of Swiss administrative survey data on directly measured hiring costs in order to quantify both their magnitude and determinants at the firm-level. Our results show that hiring costs are substantial, as average hiring costs amount to more than one-quarter of wage payments. However, the level of hiring costs differs sharply by industry, occupation and the economic environment of the firm. Furthermore, our findings indicate that marginal hiring costs increase in the number of hires.

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File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0015_lhwpaper.pdf
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Bibliographic Info

Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0015.

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Length: 42 pages
Date of creation: Mar 2008
Date of revision: Nov 2009
Handle: RePEc:iso:educat:0015

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Keywords: Hiring costs; labor adjustment costs;

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References

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Citations

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Cited by:
  1. Christian Holzner & Mario Larch, 2011. "Capacity Constraining Labor Market Frictions in a Global Economy," CESifo Working Paper Series 3597, CESifo Group Munich.
  2. Kjell Erik Lommerud & Odd Rune Straume & Steinar Vagstad, 2012. "Employment protection and unemployment benefits: On technology adoption and job creation in a matching model," NIPE Working Papers 3/2012, NIPE - Universidade do Minho.
  3. Blatter, Marc & Mühlemann, Samuel & Schenker, Samuel & Wolter, Stefan C., 2012. "Hiring Costs of Skilled Workers and the Supply of Firm-Provided Training," IZA Discussion Papers 6344, Institute for the Study of Labor (IZA).
  4. Samuel Muehlemann & Harald Pfeifer, 2012. "The structure of hiring costs in Germany - evidence from firm-level data," Economics of Education Working Paper Series 0077, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Sep 2013.
  5. Hirokazu Mizobata, 2014. "Differing factor adjustment costs across industries: Evidence from Japan," KIER Working Papers 885, Kyoto University, Institute of Economic Research.
  6. Alan Manning, 2010. "Imperfect Competition in the Labour Market," CEP Discussion Papers dp0981, Centre for Economic Performance, LSE.
  7. Silvio Sticher, 2013. "Selection upon Wage Posting," Diskussionsschriften dp1311, Universitaet Bern, Departement Volkswirtschaft.
  8. Mühlemann, Samuel & Wolter, Stefan C. & Wüest, Adrian, 2009. "Apprenticeship Training and the Business Cycle," IZA Discussion Papers 4460, Institute for the Study of Labor (IZA).
  9. Samuel Muehlemann & Harald Pfeifer & Felix Wenzelmann, 2013. "The Costs of Recruiting Apprentices: Evidence from German Firm-Level Data," Economics of Education Working Paper Series 0095, University of Zurich, Institute for Strategy and Business Economics (ISU).
  10. Yokota, Koji, 2012. "Time Discount and Convex Hiring Cost," ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) 10252/4850, Otaru University of Commerce.
  11. Stadin, Karolina, 2012. "Vacancy Matching and Labor Market Conditions," Working Paper Series 2012:16, Uppsala University, Department of Economics.

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