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Empirical matching functions: Searchers, vacancies, and (un-)biased elasticities

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  • Sunde, Uwe

Abstract

This paper shows that conventional empirical estimates of matching functions are systematically biased, because unobservable and endogenous search behaviour, such as on-the-job search by workers or the use of different search channels by firms, is neglected. I propose an approach for recovering unbiased elasticities under different scenarios of competition for workers and jobs without the need for constructing proxies for unobserved stocks of searchers and vacancies. Using German administrative data, I estimate the biases affecting conventional studies and derive bias-corrected estimates of the matching elasticities under different scenarios.

Suggested Citation

  • Sunde, Uwe, 2007. "Empirical matching functions: Searchers, vacancies, and (un-)biased elasticities," Munich Reprints in Economics 19586, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:19586
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    References listed on IDEAS

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    1. JuanJ. Dolado & Marcel Jansen & JuanF. Jimeno, 2009. "On-the-Job Search in a Matching Model with Heterogeneous Jobs and Workers," Economic Journal, Royal Economic Society, vol. 119(534), pages 200-228, January.
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    Cited by:

    1. Borowczyk-Martins, Daniel & Jolivet, Grégory & Postel-Vinay, Fabien, 2011. "Accounting For Endogenous Search Behavior in Matching Function Estimation," CEPR Discussion Papers 8471, C.E.P.R. Discussion Papers.
    2. Michael Stops, 2011. "Job Matching on non-separated Occupational Labour Markets," ERSA conference papers ersa11p372, European Regional Science Association.
    3. Masaru Sasaki & Miki Kohara & Tomohiro Machikita, 2013. "Measuring Search Frictions Using Japanese Microdata," The Japanese Economic Review, Japanese Economic Association, vol. 64(4), pages 431-451, December.
    4. Kettemann, Andreas & Mueller, Andreas & Zweimüller, Josef, 2018. "Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data," CEPR Discussion Papers 13249, C.E.P.R. Discussion Papers.
    5. Michael Stops, 2014. "Job matching across occupational labour markets," Oxford Economic Papers, Oxford University Press, vol. 66(4), pages 940-958.
    6. Bauer, Anja, 2013. "Mismatch unemployment : evidence from Germany 2000-2010," IAB Discussion Paper 201310, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Sabine Klinger & Thomas Rothe, 2012. "The Impact of Labour Market Reforms and Economic Performance on the Matching of the Short‐term and the Long‐term Unemployed," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(1), pages 90-114, February.
    8. Jahn, Elke J. & Wagner, Thomas, 2008. "Do Targeted Hiring Subsidies and Profiling Techniques Reduce Unemployment?," IZA Discussion Papers 3768, Institute for the Study of Labor (IZA).
    9. Simonetta Longhi, 2011. "On-The-Job Search: Amount, Regional, And Cyclical Variation. Evidence From Great Britain," ERSA conference papers ersa10p294, European Regional Science Association.
    10. Daniel Borowczyk-Martins & Gregory Jolivet & Fabien Postel-Vinay, 2013. "Accounting For Endogeneity in Matching Function Estimation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(3), pages 440-451, July.
    11. Yang Liu, 2011. "Labor market matching with heterogeneous job seekers in China," Economics Bulletin, AccessEcon, vol. 31(3), pages 1980-1992.

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