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Vacancy duration and wages

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  • Ihsaan Bassier
  • Alan Manning
  • Barbara Petrongolo

Abstract

We estimate the elasticity of vacancy duration with respect to posted wages, using data from the near-universe of online job adverts in the United Kingdom. Our research design identifies duration elasticities by leveraging firm-level wage policies that are plausibly exogenous to hiring difficulties on specific job vacancies, and control for job and market-level fixed-effects. Wage policies are defined based on external information on pay settlements, or on sharp, internally-defined, firm-level changes. In our preferred specifications, we estimate duration elasticities in the range -3 to -5, which are substantially larger than the few existing estimates.

Suggested Citation

  • Ihsaan Bassier & Alan Manning & Barbara Petrongolo, 2023. "Vacancy duration and wages," CEP Discussion Papers dp1943, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1943
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    Cited by:

    1. Richard Audoly & Manudeep Bhuller & Tore Adam Reiremo, 2024. "The Pay and Non-Pay Content of Job Ads," Papers 2407.13204, arXiv.org, revised Sep 2024.
    2. Carolin Linckh & Samuel Muehlemann & Harald Pfeifer, 2024. "Beggars cannot be choosers: The effect of labor market tightness on hiring standards, wages, and hiring costs," Economics of Education Working Paper Series 0217, University of Zurich, Department of Business Administration (IBW).

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    Keywords

    vacancy duration; wages; monopsony; employment;
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