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Disaggregating the Matching Function

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  • Peter A. Diamond
  • Ayşegül Şahin

Abstract

The aggregate matching (hiring) function relates gross hires to labor market tightness. Decompositions of aggregate hires show how the hiring process differs across different groups of workers and of firms. Decompositions include employment status in the previous month, age, gender and education. Another separates hiring between part-time and full-time jobs, which show different patterns in the current recovery. Shift-share analyses are done based on industry, firm size and occupation to show what part of the residual of the aggregate hiring function can be explained by the composition of vacancies. The hiring process appears to shift as a recovery starts, coinciding with shifts in the Beveridge curve. The paper also discusses some issues in the modeling of the labor market.

Suggested Citation

  • Peter A. Diamond & Ayşegül Şahin, 2016. "Disaggregating the Matching Function," NBER Working Papers 22965, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22965
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    Cited by:

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    2. Goos, Maarten & Rademakers, Emilie & Salomons, Anna & Willekens, Bert, 2019. "Markets for jobs and their task overlap," Labour Economics, Elsevier, vol. 61(C).

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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