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Random and stock-flow models of labour market matching - Swedish evidence

  • Forslund, Anders

    ()

    (IFAU - Institute for Labour Market Policy Evaluation)

  • Johansson, Kerstin

    (IFAU - Institute for Labour Market Policy Evaluation)

In this paper we estimate aggregate matching functions taking advantage of a rich data base that enables us to compute observations on the variables in the matching function at (virtually) any frequency to assess the importance of the time aggregation problem. We also generate stocks, outflows and inflows of vacancies and job seekers to shed light on the importance of stock-slow matching. Finally, we assess the contribution of labour market programme participants to matching. Our evidence rejects random matching. More precisely, we find that a non-trivial fraction of new job seekers match instantly (within the first week), that stocks of "old" vacancies and job seekers do not contribute significantly to matching and that the inflow of vacancies matches with the lagged stock of job seekers. Our results also suggest that labour market programme participants contribute to matching to a lesser extent than openly unemployed job seekers. We also find that the use of lagged stocks as right-hand side variables in matching functions (i.e., ignoring the within-period inflow of job seekers and vacancies) gives lower estimates of matching elasicities and that this is more pronounced the lower the measurement frequency.

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File URL: http://www.ifau.se/upload/pdf/se/2007/wp07-11.pdf
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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2007:11.

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Length: 27 pages
Date of creation: 12 Apr 2007
Date of revision:
Handle: RePEc:hhs:ifauwp:2007_011
Contact details of provider: Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
Fax: (+46) 18 - 471 70 71
Web page: http://www.ifau.se/
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  1. Andersson, Christian, 2007. "Teacher density and student achievement in Swedish compulsory schools," Working Paper Series 2007:5, Uppsala University, Department of Economics.
  2. van den Berg, Gerard & Lindeboom, Maarten & López, Marta, 2007. "Inequality in individual mortality and economic conditions earlier in life," Working Paper Series 2007:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Lundin, Daniela & Mörk, Eva & Öckert, Björn, 2007. "Do reduced child care prices make parents work more?," Working Paper Series 2007:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  4. Andersson, Christian & Waldenström, Nina, 2007. "Teacher supply and the market for teachers," Working Paper Series 2007:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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