IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp17613.html

Decomposing Recruitment Elasticity in Job Matching

Author

Listed:
  • Kambayashi, Ryo

    (Musashi University)

  • Kawaguchi, Kohei

    (Hong Kong University of Science & Technology)

  • Otani, Suguru

    (University of Tokyo)

Abstract

This study estimates and decomposes recruitment elasticity, a key measure of employer market power, across job-matching stages using data from Japan's largest job-matching intermediary. On average, recruitment elasticity is negative but not statistically significantly different from zero. However, this masks heterogeneity across stages. The negative elasticity arises from lower-wage workers avoiding higher-wage vacancies during inquiry. Posted wages positively influence application, interview attendance, and offer acceptance decisions, with elasticity decreasing in that order. Other important patterns are also examined.

Suggested Citation

  • Kambayashi, Ryo & Kawaguchi, Kohei & Otani, Suguru, 2025. "Decomposing Recruitment Elasticity in Job Matching," IZA Discussion Papers 17613, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp17613
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp17613.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. John Horton & David Rand & Richard Zeckhauser, 2011. "The online laboratory: conducting experiments in a real labor market," Experimental Economics, Springer;Economic Science Association, vol. 14(3), pages 399-425, September.
    2. Michèle Belot & Philipp Kircher & Paul Muller, 2022. "How Wage Announcements Affect Job Search—A Field Experiment," American Economic Journal: Macroeconomics, American Economic Association, vol. 14(4), pages 1-67, October.
    3. Arindrajit Dube & Jeff Jacobs & Suresh Naidu & Siddharth Suri, 2020. "Monopsony in Online Labor Markets," American Economic Review: Insights, American Economic Association, vol. 2(1), pages 33-46, March.
    4. Kenneth Burdett & Shouyong Shi & Randall Wright, 2001. "Pricing and Matching with Frictions," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 1060-1085, October.
    5. Raj Chetty, 2012. "Bounds on Elasticities With Optimization Frictions: A Synthesis of Micro and Macro Evidence on Labor Supply," Econometrica, Econometric Society, vol. 80(3), pages 969-1018, May.
    6. Langella, Monica & Manning, Alan Patrick, 2021. "The measure of monopsony," LSE Research Online Documents on Economics 113925, London School of Economics and Political Science, LSE Library.
    7. Monica Langella & Alan Manning, 2021. "Marshall Lecture 2020: The Measure of Monopsony [Monopsony in the UK]," Journal of the European Economic Association, European Economic Association, vol. 19(6), pages 2929-2957.
    8. Ernesto Dal Bó & Frederico Finan & Martín A. Rossi, 2013. "Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 1169-1218.
    9. Ihsaan Bassier & Arindrajit Dube & Suresh Naidu, 2022. "Monopsony in Movers: The Elasticity of Labor Supply to Firm Wage Policies," Journal of Human Resources, University of Wisconsin Press, vol. 57(S), pages 50-86.
    10. José Azar & Ioana Marinescu & Marshall Steinbaum, 2019. "Measuring Labor Market Power Two Ways," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 317-321, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Taiyo Fukai & Keisuke Kawata & Mizuki Komura & Takahiro Toriyabe, 2025. "The wage-mismatch index: A new indicator of labor demand in the job search market," Discussion Paper Series 296, School of Economics, Kwansei Gakuin University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. KAMBAYASHI, Ryo & KAWAGUCHI, Kohei & OTANI, Suguru, 2023. "Estimating Recruitment Elasticity in the Multi-stage and Bilateral Job Matching Process," Discussion Paper Series 746, Institute of Economic Research, Hitotsubashi University.
    2. Ihsaan Bassier, 2022. "Firms and inequality when unemployment is high," CEP Discussion Papers dp1872, Centre for Economic Performance, LSE.
    3. Ihsaan Bassier & Alan Manning, 2025. "Estimating labour market power: the long and short of it," CEP Discussion Papers dp2108, Centre for Economic Performance, LSE.
    4. Bassier, Ihsaan, 2023. "Firms and inequality when unemployment is high," Journal of Development Economics, Elsevier, vol. 161(C).
    5. Bas Scheer & Wiljan van den Berge & Maarten Goos & Alan Manning & Anna Salomons, 2022. "Alternative Work Arrangements and Worker Outcomes: Evidence from Payrolling," CPB Discussion Paper 435, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Langella, Monica & Manning, Alan Patrick, 2021. "The measure of monopsony," LSE Research Online Documents on Economics 113925, London School of Economics and Political Science, LSE Library.
    7. Bassier, Ihsaan & Manning, Alan & Petrongolo, Barbara, 2023. "Vacancy Duration and Wages," IZA Discussion Papers 16371, IZA Network @ LISER.
    8. Kahn, Matthew E. & Tracy, Joseph, 2024. "Monopsony in spatial equilibrium," Regional Science and Urban Economics, Elsevier, vol. 104(C).
    9. Alan Manning, 2021. "Monopsony in Labor Markets: A Review," ILR Review, Cornell University, ILR School, vol. 74(1), pages 3-26, January.
    10. Mukesh Eswaran, 2024. "The Nature of Labor’s Vulnerability to Exploitation," Review of Radical Political Economics, Union for Radical Political Economics, vol. 56(4), pages 554-575, December.
    11. Bassier, Ihsaan, 2022. "Firms and inequality when unemployment is high," LSE Research Online Documents on Economics 117999, London School of Economics and Political Science, LSE Library.
    12. Nikhil Datta, 2023. "The measure of monopsony: the labour supply elasticity to the firm and its constituents," CEP Discussion Papers dp1930, Centre for Economic Performance, LSE.
    13. Bassier, Ihsaan, 2022. "Firms and inequality when unemployment is high," LSE Research Online Documents on Economics 121970, London School of Economics and Political Science, LSE Library.
    14. Gibson, Matthew, 2021. "Employer Market Power in Silicon Valley," IZA Discussion Papers 14843, IZA Network @ LISER.
    15. Albert Jan Hummel, 2021. "Monopsony Power, Income Taxation and Welfare," CESifo Working Paper Series 9128, CESifo.
    16. Datta, Nikhil, 2023. "The measure of monopsony: the labour supply elasticity to the firm and its constituents," LSE Research Online Documents on Economics 121312, London School of Economics and Political Science, LSE Library.
    17. Albert Jan Hummel, 2021. "Monopsony power, income taxation and welfare," Tinbergen Institute Discussion Papers 21-051/VI, Tinbergen Institute.
    18. Cantarella, Michele & Strozzi, Chiara, 2019. "Workers in the Crowd: The Labour Market Impact of the Online Platform Economy," IZA Discussion Papers 12327, IZA Network @ LISER.
    19. Kahn, Shulamit & MacGarvie, Megan, 2024. "New evidence on international postdocs in the US: Less pay, different experiences," Research Policy, Elsevier, vol. 53(9).
    20. Larissa Fuchs & Matthias Heinz & Pia Pinger & Max Thon, 2024. "How to Attract Talent? Field-Experimental Evidence on Emphasizing Flexibility and Career Opportunities in Job Advertisements," ECONtribute Discussion Papers Series 332, University of Bonn and University of Cologne, Germany.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp17613. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Fallak (email available below). General contact details of provider: https://edirc.repec.org/data/izaaalu.html .

    Please note that corrections may take a c