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Ten Facts You Need To Know About Hiring

Author

Listed:
  • Samuel Mühlemann

    () (University of Munich & IZA Bonn)

  • Mirjam Strupler Leiser

    () (University of Bern)

Abstract

We provide new empirical evidence regarding the magnitude and the determinants of a firm's costs required to fill a vacancy. The average costs required to fill a vacancy for a skilled worker in Switzerland amount to about 16 weeks of wage payments. The main components of the vacancy costs are initially low productivity, the formal instruction of a new hire (53 percent), disruption costs due to informal instruction of new hires (26 percent), and search costs (21 percent). Furthermore, hiring costs for small firms are associated with labor market tightness (i.e., the vacancy-unemployment ratio).

Suggested Citation

  • Samuel Mühlemann & Mirjam Strupler Leiser, 2015. "Ten Facts You Need To Know About Hiring," Economics of Education Working Paper Series 0111, University of Zurich, Department of Business Administration (IBW), revised Sep 2015.
  • Handle: RePEc:iso:educat:0111
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    File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0111_lhwpaper.pdf
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    References listed on IDEAS

    as
    1. Marcus Hagedorn & Iourii Manovskii, 2008. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited," American Economic Review, American Economic Association, vol. 98(4), pages 1692-1706, September.
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    Cited by:

    1. Moretti, Luca & Mayerl, Martin & Mühlemann, Samuel & Schlögl, Peter & Wolter, Stefan C., 2017. "So Similar and Yet So Different: A Comparative Analysis of a Firm's Cost and Benefits of Apprenticeship Training in Austria and Switzerland," IZA Discussion Papers 11081, Institute for the Study of Labor (IZA).
    2. Faccini, Renato & Melosi, Leonardo, 2018. "The Role of News about TFP in U.S. Recessions and Booms," Working Paper Series WP-2018-6, Federal Reserve Bank of Chicago.
    3. Luca Moretti & Martin Mayerl & Samuel Muehlemann & Peter Schloegl & Stefan C. Wolter, 2017. "So similar and yet so different: A comparative analysis of a firm's net costs and post-apprenticeship training benefits in Austria and Switzerland," Economics of Education Working Paper Series 0137, University of Zurich, Department of Business Administration (IBW), revised Apr 2018.
    4. repec:eee:labeco:v:51:y:2018:i:c:p:247-270 is not listed on IDEAS

    More about this item

    Keywords

    hiring costs; search costs; adaptation costs; disruption costs; vacancy-unemployment ratio;

    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
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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