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The Costs of Hiring Skilled Workers

  • Marc Blatter

    (Institute of Economics, University of Berne)

  • Samuel Muehlemann

    ()

    (Institute of Economics, University of Berne)

  • Samuel Schenker

    (Institute of Economics, University of Berne)

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.

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File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0015_lhwpaper.pdf
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Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0015.

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Length: 42 pages
Date of creation: Mar 2008
Date of revision: Nov 2009
Handle: RePEc:iso:educat:0015
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  1. Hyslop, Dean R & Imbens, Guido W, 2001. "Bias from Classical and Other Forms of Measurement Error," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 475-81, October.
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  19. Gerard A. Pfann & Franz C. Palm, 1993. "Asymmetric Adjustment Costs in Non-linear Labour Demand Models for the Netherlands and U.K. Manufacturing Sectors," Review of Economic Studies, Oxford University Press, vol. 60(2), pages 397-412.
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