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Directed Search with Phantom Vacancies

Author

Listed:
  • James Albrecht

    (Department of Economics, Georgetown University, IZA - Institute for the study of labor - Institute for the Study of Labor - IZA)

  • Bruno Decreuse

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales)

  • Susan Vroman

    (Department of Economics, Georgetown University, IZA - Institute for the study of labor - Institute for the Study of Labor - IZA)

Abstract

When vacancies are filled, the ads that were posted are generally not withdrawn, creating phantom vacancies. The existence of phantoms implies that older job listings are less likely to represent true vacancies than are younger ones. We assume that job seekers direct their search based on the listing age for otherwise identical listings and so equalize the probability of matching across listing age. Forming a match with a vacancy of age a creates a phantom of age a and thus creates a negative informational externality that affects all vacancies of age a or older. The magnitude of this externality decreases with a. The directed search behavior of job seekers leads them to over-apply to younger listings. We calibrate the model using US labor market data. The contribution of phantoms to overall frictions is large, but, conditional on the existence of phantoms, the social planner cannot improve much on the directed search allocation.

Suggested Citation

  • James Albrecht & Bruno Decreuse & Susan Vroman, 2017. "Directed Search with Phantom Vacancies," Working Papers halshs-01484717, HAL.
  • Handle: RePEc:hal:wpaper:halshs-01484717
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01484717
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    References listed on IDEAS

    as
    1. Marinescu, Ioana, 2017. "The general equilibrium impacts of unemployment insurance: Evidence from a large online job board," Journal of Public Economics, Elsevier, vol. 150(C), pages 14-29.
    2. Albrecht, James & Navarro, Lucas & Vroman, Susan, 2010. "Efficiency in a search and matching model with endogenous participation," Economics Letters, Elsevier, vol. 106(1), pages 48-50, January.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Directed Search with Phantom Vacancies
      by Christian Zimmermann in NEP-DGE blog on 2017-04-18 20:10:17

    More about this item

    Keywords

    directed search; information persistence; vacancy age;

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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