IDEAS home Printed from https://ideas.repec.org/p/hhs/sofiwp/2005_001.html
   My bibliography  Save this paper

A Theory of Vacancies

Author

Listed:
  • Farm, Ante

    () (Swedish Institute for Social Research, Stockholm University)

Abstract

This paper is, firstly, a reappraisal of the matching function, arguing that the proper specification of the relation between hirings (H), vacancies (V), and unemployment is the duration function, which shows how average recruitment times as measured by V/H depend on unemployment and other relevant variables. Secondly, indirect effects of longer recruitment times on employment through higher recruitment costs are studied by extending previous models to include both price formation and the distinction between vacancy costs and hiring costs. Thirdly, direct effects of longer recruitment times on employment through more unfilled jobs are explored and illustrated with data from Sweden since 2000 from a new business survey, which measures not only job vacancies but also unfilled jobs.

Suggested Citation

  • Farm, Ante, 2004. "A Theory of Vacancies," Working Paper Series 1/2005, Stockholm University, Swedish Institute for Social Research.
  • Handle: RePEc:hhs:sofiwp:2005_001
    as

    Download full text from publisher

    File URL: http://su.diva-portal.org/smash/get/diva2:375199/FULLTEXT01.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
    2. Barron, John M & Bishop, John, 1985. "Extensive Search, Intensive Search, and Hiring Costs: New Evidence on Employer Hiring Activity," Economic Inquiry, Western Economic Association International, vol. 23(3), pages 363-382, July.
    3. Nber, 1966. "The Measurement and Interpretation of Job Vacancies," NBER Books, National Bureau of Economic Research, Inc, number unkn66-2, January.
    4. Barron, John M & Bishop, John & Dunkelberg, William C, 1985. "Employer Search: The Interviewing and Hiring of New Employees," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 43-52, February.
    5. Farm, Ante, 2003. "Defining and Measuring Unmet Labour Demand," Working Paper Series 1/2003, Stockholm University, Swedish Institute for Social Research.
    6. Katharine G. Abraham, 1987. "Help-Wanted Advertising, Job Vacancies, and Unemployment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(1), pages 207-248.
    7. Charles Holt & Martin David, 1966. "The Concept of Job Vacancies in a Dynamic Theory of the Labor Market," NBER Chapters,in: The Measurement and Interpretation of Job Vacancies, pages 73-110 National Bureau of Economic Research, Inc.
    8. W. Thomson, 1966. "Collection and Use of Job Vacancy Data in Canada," NBER Chapters,in: The Measurement and Interpretation of Job Vacancies, pages 173-194 National Bureau of Economic Research, Inc.
    9. Pissarides, Christopher A, 1984. "Search Intensity, Job Advertising, and Efficiency," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 128-143, January.
    10. Abraham, Katharine G, 1983. "Structural-Frictional vs. Deficient Demand Unemployment: Some New Evidence," American Economic Review, American Economic Association, vol. 73(4), pages 708-724, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Vacancies; hirings; matching function; friction;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:sofiwp:2005_001. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stefan Englund). General contact details of provider: http://edirc.repec.org/data/sofsuse.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.