IDEAS home Printed from https://ideas.repec.org/p/red/sed014/368.html
   My bibliography  Save this paper

Measuring Matching Efficiency with Heterogeneous Jobseekers

Author

Listed:
  • Sam Schulhofer-Wohl

    (Federal Reserve Bank of Minneapolis)

  • Robert Hall

    (STANFORD UNIVERSITY)

Abstract

Matching efficiency is the productivity of the process for matching would-be workers to available jobs. Measurement of match efficiency follows the same principles as measuring a Hicks-neutral index of productivity of production. We develop a framework for measuring matching productivity when the population of jobseekers is heterogeneous. The efficiency index for each type of jobseeker is the monthly job-finding rate for the type adjusted for the overall tightness of the labor market. We break jobseekers into nine groups -- six for unemployed people by source of unemployment, plus jobseekers classified as out of the labor force and two types of people currently holding jobs but looking to make a job-to-job transition. The last three groups account for 78 percent of new hires during normal times. We focus on the period from 2005 through 2012. We find that overall matching efficiency declined over the period, but hardly more than its earlier downward trend. It rose in the year of maximum employment decline, 2009. Matching efficiency declined after 2007 in some types of unemployment, notably permanent job loss, quitting, and new entrants, but rose in others, such as unemployment initiated as a layoff with expectation of recall. Efficiency remained steady during the Great Recession for job-to-job transitions. In its peak year, 2010, unemployment was about one percentage point higher that it would have been if matching efficiency had remained constant.

Suggested Citation

  • Sam Schulhofer-Wohl & Robert Hall, 2014. "Measuring Matching Efficiency with Heterogeneous Jobseekers," 2014 Meeting Papers 368, Society for Economic Dynamics.
  • Handle: RePEc:red:sed014:368
    as

    Download full text from publisher

    File URL: https://economicdynamics.org/meetpapers/2014/paper_368.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Mary C. Daly & Bart Hobijn & Aysegül Sahin & Robert G. Valletta, 2012. "A Search and Matching Approach to Labor Markets: Did the Natural Rate of Unemployment Rise?," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 3-26, Summer.
    2. Alan B. Krueger & Andreas Mueller, 2011. "Job Search and Job Finding in a Period of Mass Unemployment: Evidence from High-Frequency Longitudinal Data," Working Papers 1295, Princeton University, Department of Economics, Center for Economic Policy Studies..
    3. repec:zbw:rwirep:0305 is not listed on IDEAS
    4. Shigeru Fujita, 2011. "Effects of extended unemployment insurance benefits: evidence from the monthly CPS," Working Papers 10-35, Federal Reserve Bank of Philadelphia, revised 2011.
    5. Ronald Bachmann & Mathias Sinning, 2016. "Decomposing the Ins and Outs of Cyclical Unemployment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 853-876, December.
    6. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 33(1), pages 125-132.
    7. repec:pri:cepsud:215krueger is not listed on IDEAS
    8. Alan B. Krueger & Andreas Mueller, 2011. "Job Search, Emotional Well-Being and Job Finding in a Period of Mass Unemployment: Evidence from High-Frequency Longitudinal Data," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 1-81.
    9. repec:pri:indrel:dsp014j03cz656 is not listed on IDEAS
    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. Fabian Lange & Marianna Kudlyak, 2014. "Measuring Heterogeneity in Job Finding Rates Among the Nonemployed Using Labor Force Status Histories," Working Paper 14-18, Federal Reserve Bank of Richmond, revised 04 Dec 2014.
    2. Robert E. Hall, 2015. "Quantifying the Lasting Harm to the US Economy from the Financial Crisis," NBER Macroeconomics Annual, University of Chicago Press, vol. 29(1), pages 71-128.
    3. Alessandro Gavazza & Simon Mongey & Giovanni L. Violante, 2018. "Aggregate Recruiting Intensity," American Economic Review, American Economic Association, vol. 108(8), pages 2088-2127, August.
    4. Andreas Hornstein & Marianna Kudlyak & Fabian Lange, 2014. "Measuring Resource Utilization in the Labor Market," Economic Quarterly, Federal Reserve Bank of Richmond, pages 1-21.
    5. Regis Barnichon & Andrew Figura, 2015. "Labor Market Heterogeneity and the Aggregate Matching Function," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(4), pages 222-249, October.
    6. Martin S. Eichenbaum, 2015. "Comment," NBER Macroeconomics Annual, University of Chicago Press, vol. 29(1), pages 129-145.
    7. Ravn, Morten O. & Sterk, Vincent, 2017. "Job uncertainty and deep recessions," Journal of Monetary Economics, Elsevier, vol. 90(C), pages 125-141.
    8. Hie Ahn & James Hamilton, 2016. "Heterogeneity and Unemployment Dynamics," Working Papers id:11130, eSocialSciences.
    9. Marianna Kudlyak & Andreas Hornstein, 2015. "Estimating Matching Efficiency with Variable Search Effort," Working Paper Series 2016-24, Federal Reserve Bank of San Francisco, revised 21 May 2015.
    10. Martin S. Eichenbaum, 2014. "Comment on "Quantifying the Lasting Harm to the U.S. Economy from the Financial Crisis"," NBER Chapters, in: NBER Macroeconomics Annual 2014, Volume 29, pages 129-145, National Bureau of Economic Research, Inc.
    11. Petr Sedlacek, 2016. "The aggregate matching function and job search from employment and out of the labor force," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 21, pages 16-28, July.
    12. Simon Mongey & Gianluca Violante & Alessandro Gavazza, 2015. "What Shifts the Beveridge Curve? Recruiting Intensity and Financial Shocks," 2015 Meeting Papers 1079, Society for Economic Dynamics.

    More about this item

    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:red:sed014:368. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann). General contact details of provider: http://edirc.repec.org/data/sedddea.html .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.