Firm-Level Hiring Difficulties: Persistence, Business Cycle and Local Labour Market Influences
AbstractWe examine the correlates of reported hiring difficulties at the firm level using linked employer-employee and panel survey data over 2005-2011, focussing on the relative influence of firm-level characteristics, persistence, the business cycle and local labour market liquidity. At both the aggregate and the firm-level, hiring difficulties eased after the onset of the Global Financial Crisis. Even in the presence of large cyclical changes in demand and labour market conditions, firm-level persistence is a dominant feature of the data, with one- and two-year lags of reported hiring difficulties both positively related to current difficulties. Firms paying higher wages are more likely to report difficulties when trying to hire skilled workers, while firms with more long tenure workers are less likely to report any difficulty hiring. Local labour market conditions appear unrelated to reported hiring difficulties.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7534.
Length: 46 pages
Date of creation: Jul 2013
Date of revision:
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Other versions of this item:
- Richard Fabling & Maré, David C, 2013. "Firm-level Hiring Difficulties: Persistence, Business Cycle and Local Labour Market Influences," Working Papers 13_06, Motu Economic and Public Policy Research.
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
- M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-16 (All new papers)
- NEP-BEC-2013-08-16 (Business Economics)
- NEP-CSE-2013-08-16 (Economics of Strategic Management)
- NEP-LAB-2013-08-16 (Labour Economics)
- NEP-LMA-2013-08-16 (Labor Markets - Supply, Demand, & Wages)
- NEP-MAC-2013-08-16 (Macroeconomics)
- NEP-SPO-2013-08-16 (Sports & Economics)
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