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Job matching across occupational labour markets

  • Stops, Michael


    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

"This paper refers to an analysis of matching processes in occupational labour markets in terms of classes of jobs that share extensive commonalities in their required qualifications and tasks. To date, all studies in this field have been based on the assumption of separate occupational labour markets. This assumption suggests that job search and matching processes only transpire within distinct occupational labour markets and that no occupational changes occur. I present theoretical and empirical arguments that undermine the validity of this assumption. Moreover, I construct an 'occupational' typology based on information about the ways in which occupational groups may be seen as alternatives in searches for jobs or workers respectively. I then use pooled ordinary least squares, fixed effects, and pooled mean-group models that consider cross-sectional dependency lags for regressors to test the hypothesis that job search and matching occur across occupational labour markets. In particular, I find significant and positive matching elasticities with respect to the averaged numbers of unemployed workers and vacancies in similar occupational groups; these results clearly support my hypothesis. Furthermore, there are indications that returns to scale that are derived from the results of the pooled mean-group model are constant. The findings of this study strongly suggest the use of an augmented matching function that considers job and worker searches across occupational labour markets." (Author's abstract, IAB-Doku) ((en))

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Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 201227.

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Length: 44 pages
Date of creation: 28 Nov 2012
Date of revision:
Publication status: published in: Oxford Economic Papers, Online First (2014), 19 p.
Handle: RePEc:iab:iabdpa:201227
Contact details of provider: Postal: Regensburger Str. 104, D-90327 Nürnberg
Phone: 0911/179-0
Fax: 0911/179-3258
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