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Decomposing Recruitment Elasticity in Job Matching

Author

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  • 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, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17613
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    References listed on IDEAS

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    1. 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.
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    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
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    Keywords

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    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

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