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Hiring for old and new positions: Understanding wage formation, sorting, and

Author

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  • Dogan Gülümser

    (Uppsala University amd Uppsala Center for Labor Studies)

Abstract

This presentation explores how firms' demands for new skills (occupations) affect workers' labor market outcomes and within- and across-firms wage dispersion. I outline a stylized matching model (Jovanovic 1979) to study firms' differential responses to information frictions when hiring for new versus preexisting occupations. Firms respond to higher information frictions when creating new roles by screening more, which results in better match quality for new positions. Using matched employer–employee panel data from Sweden, I show that workers entering newly created roles within

Suggested Citation

  • Dogan Gülümser, 2024. "Hiring for old and new positions: Understanding wage formation, sorting, and," French Stata Users' Group Meetings 2024 05, Stata Users Group.
    • Handle: RePEc:boc:fsug24:05
    as

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    File URL: http://repec.org/frsug2024/France24_Gulumser.pdf
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    References listed on IDEAS

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