IDEAS home Printed from https://ideas.repec.org/p/tcb/wpaper/1607.html
   My bibliography  Save this paper

Search by Firms and Labor Market Policies

Author

Listed:
  • Gonul Sengul

Abstract

This paper develops a model of search by employers in which search to fill a vacancy affects firms' probability of hiring, duration of the employment relationship, cost of a vacancy and the expected productivity of the job. I employ a model with uncertainty about the quality of a match: it could be of good or bad quality. Firms conduct interviews where they learn the probability of the match being of good quality and select the worker with the highest probability. Hence, more interviews increase the chance of getting a good quality match thereby reducing separations. I find that firms mostly adjust the number of interviews they conduct when labor market policies are introduced to the model. Counterfactual exercises where firms cannot adjust the number of interviews reveal that selection channel mostly mitigates the effect of policy on unemployment rate.

Suggested Citation

  • Gonul Sengul, 2016. "Search by Firms and Labor Market Policies," Working Papers 1607, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    • Handle: RePEc:tcb:wpaper:1607
    as

    Download full text from publisher

    File URL: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Publications/Research/Working+Paperss/2016/16-07
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Labor market search; Unemployment; Search by employer; Labor market policies;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tcb:wpaper:1607. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sermet Pekin or Ilker Cakar or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/tcmgvtr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.