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Estimations of Occupational and Regional Matching Efficiencies Using Stochastic Production Frontier Models

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Author Info

  • Fahr, René

    ()
    (University of Paderborn)

  • Sunde, Uwe

    ()
    (University of Munich)

Abstract

By applying a stochastic production frontier approach to the matching process of unemployed and vacancies, this paper provides novel detailed insights into the process of job creation. For different labor markets as defined by occupation and region, the methodology produces estimates of the relative importance of demand and supply factors for the creation of new jobs, and of the overall efficiency of job creation. Some crucial determinants of the overall matching efficiency are identified and analyzed. This allows to make differentiated statements about the appropriateness of labor market policies, and therefore provides policy makers with novel relevant information.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 552.

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Length: 26 pages
Date of creation: Aug 2002
Date of revision:
Handle: RePEc:iza:izadps:dp552

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Keywords: occupational unemployment; stochastic frontier; matching efficiency; regional unemployment;

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References

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  1. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
  2. Fahr, René & Sunde, Uwe, 2001. "Strategic Hiring Behavior in Empirical Matching Functions," IZA Discussion Papers 320, Institute for the Study of Labor (IZA).
  3. Richard Jackman & Richard Layard & S Savouri, 1990. "Mismatch: A Framework for Thought," CEP Discussion Papers dp0001, Centre for Economic Performance, LSE.
  4. Adriana D. Kugler & Gilles Saint-Paul, 2004. "How Do Firing Costs Affect Worker Flows in a World with Adverse Selection?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 22(3), pages 553-584, July.
  5. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199279173, October.
  6. Sunde, Uwe, 2002. "Unobserved Bilateral Search on the Labor Market: A Theory-Based Correction for a Common Flaw in Empirical Matching Studies," IZA Discussion Papers 520, Institute for the Study of Labor (IZA).
  7. Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, Elsevier, vol. 46(1-2), pages 39-56.
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Cited by:
  1. Jeruzalski, Tomasz & Tyrowicz, Joanna, 2009. "(In)Efficiency of Matching - The Case of A Post-transition Economy," MPRA Paper 16598, University Library of Munich, Germany.
  2. Drine, Imed & Bou Abid, Anis, 2010. "Efficiency frontier and matching process on the labor market: Evidence from Tunisia," MPRA Paper 21994, University Library of Munich, Germany.
  3. Iva Tomic, 2012. "The Efficiency of the Matching Process: Exploring the Impact of Regional Employment Offices in Croatia," Working Papers, The Institute of Economics, Zagreb 1204, The Institute of Economics, Zagreb.
  4. Sergio Destefanis & Raquel Fonseca, 2006. "Labour-Market Reforms and the Beveridge Curve. Some Macro Evidence for Italy," CSEF Working Papers, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy 168, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.

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