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Vacancies, Employment Outcomes and Firm Growth: Evidence from Denmark

Author

Listed:
  • Jesper Bagger

    (Royal Holloway, University of London and Dale T. Mortensen Centre, Aarhus University)

  • Francois Fontaine

    (Paris School of Economics, Universite Paris 1-Pantheon Sorbonne)

  • Manolis Galenianos

    (Royal Holloway, University of London)

  • Ija Trapeznikova

    (Royal Holloway, University of London)

Abstract

We use a comprehensive dataset from Denmark that combines online job advertisements with a matched employer-employee dataset and a firm-level dataset with value added and revenue information to study the relationship between vacancy-posting and various firm outcomes. We find that posting a vacancy significantly increases a firm's hiring rate, and that two-third of the additional hiring occurs in the same quarter while one-third occurs with one quarter lag. The majority of the effect is accounted for by hiring from employment. Small and slow-growth firms show greater hiring responses and the hiring response of high-productivity firms takes longer to materialize. We find that separations that are likely associated with quits predict vacancy posting, consistent with replacement hiring and vacancy chains. Growth in value added and revenue has a strong positive effect on vacancy posting but only when shocks are permanent - transitory shocks do not affect vacancy posting.

Suggested Citation

  • Jesper Bagger & Francois Fontaine & Manolis Galenianos & Ija Trapeznikova, 2020. "Vacancies, Employment Outcomes and Firm Growth: Evidence from Denmark," Economics Working Papers 2020-04, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2020-04
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    References listed on IDEAS

    as
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    Cited by:

    1. Moser, Christian & Saidi, Farzad & Wirth, Benjamin & Wolter, Stefanie, 2020. "Credit Supply, Firms, and Earnings Inequality," MPRA Paper 100371, University Library of Munich, Germany.
    2. Maibom, Jonas & Vejlin, Rune Majlund, 2021. "Passthrough of Firm Performance to Income and Employment Stability," IZA Discussion Papers 14131, Institute of Labor Economics (IZA).
    3. Atkins, Rachel M.B. & Hernández-Lagos, Pablo & Jara-Figueroa, Cristian & Seamans, Robert, 2023. "JUE Insight: What is the impact of opportunity zones on job postings?," Journal of Urban Economics, Elsevier, vol. 136(C).

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    More about this item

    Keywords

    Vacancies; hiring; separations; employment growth; firm growth; value added; revenue;
    All these keywords.

    JEL classification:

    • 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

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