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The Costs of Hiring Skilled Workers

Author

Listed:
  • Marc Blatter

    (Institute of Economics, University of Berne)

  • Samuel Muehlemann

    (Institute of Economics, University of Berne)

  • Samuel Schenker

    (Institute of Economics, University of Berne)

Abstract

Hiring workers is costly and therefore influences the firm's labor demand. We make use of Swiss administrative survey data on directly measured hiring costs in order to quantify both their magnitude and determinants at the firm-level. Our results show that hiring costs are substantial, as average hiring costs amount to more than one-quarter of wage payments. However, the level of hiring costs differs sharply by industry, occupation and the economic environment of the firm. Furthermore, our findings indicate that marginal hiring costs increase in the number of hires.

Suggested Citation

  • Marc Blatter & Samuel Muehlemann & Samuel Schenker, 2008. "The Costs of Hiring Skilled Workers," Economics of Education Working Paper Series 0015, University of Zurich, Department of Business Administration (IBW), revised Nov 2009.
    • Handle: RePEc:iso:educat:0015
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Hiring costs; labor adjustment costs;

    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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