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Vacancy Duration and Wages

Author

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  • Bassier, Ihsaan

    (London School of Economics)

  • Manning, Alan

    (London School of Economics)

  • Petrongolo, Barbara

    (University of Oxford)

Abstract

We estimate the elasticity of vacancy duration with respect to posted wages, using data from the near-universe of online job adverts in the United Kingdom. Our research design identifies duration elasticities by leveraging firm-level wage policies that are plausibly exogenous to hiring difficulties on specific job vacancies, and control for job and market-level fixed-effects. Wage policies are defined based on external information on pay settlements, or on sharp, internally-defined, firm-level changes. In our preferred specifications, we estimate duration elasticities in the range −3 to −5, which are substantially larger than the few existing estimates.

Suggested Citation

  • Bassier, Ihsaan & Manning, Alan & Petrongolo, Barbara, 2023. "Vacancy Duration and Wages," IZA Discussion Papers 16371, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16371
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    References listed on IDEAS

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    More about this item

    Keywords

    vacancy duration; monopsony; wages;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • 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

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