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Vacancy duration and wages

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  • Bassier, Ihsaan
  • Manning, Alan
  • Petrongolo, Barbara

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

  • Bassier, Ihsaan & Manning, Alan & Petrongolo, Barbara, 2023. "Vacancy duration and wages," CEPR Discussion Papers 18365, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18365
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    Cited by:

    1. 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).
    2. Carter, Charles & Delaney, Judith M. & Papps, Kerry L., 2024. "The Effect of Wages on Job Vacancy Duration: Evidence from a Spatial Discontinuity," IZA Discussion Papers 17273, Institute of Labor Economics (IZA).
    3. Richard Audoly & Manudeep Bhuller & Tore Adam Reiremo, 2024. "The Pay and Non-Pay Content of Job Ads," Staff Reports 1124, Federal Reserve Bank of New York.

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    Keywords

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    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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