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Directed Search with Phantom Vacancies

Author

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  • Susan Vroman

    (Georgetown University)

Abstract

Information persistence about already filled vacancies implies that old vacancies are likely to be obsolete or phantom vacancies. When ads for jobs stipulate the vacancy creation date, job-seekers apply for the different jobs so as to equalize matching odds across vacancy age. This search behavior leads them to over-apply to young vacancies. Finding a job of a given age creates phantom vacancy and a negative informational externality that affects all cohorts of vacancies after this age. Thus the magnitude of the externality decreases with the age of the vacancy filled. We calibrate the model on US labor market data. The magnitude of the externality is small, despite the fact that the contribution of phantom vacancies to overall frictions is large.

Suggested Citation

  • Susan Vroman, 2015. "Directed Search with Phantom Vacancies," 2015 Meeting Papers 649, Society for Economic Dynamics.
    • Handle: RePEc:red:sed015:649
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    References listed on IDEAS

    as
    1. Galenianos, Manolis & Kircher, Philipp, 2009. "Directed search with multiple job applications," Journal of Economic Theory, Elsevier, vol. 144(2), pages 445-471, March.
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    4. Arnaud Chéron & Jean‐Olivier Hairault & François Langot, 2011. "Age‐Dependent Employment Protection," Economic Journal, Royal Economic Society, vol. 121(557), pages 1477-1504, December.
    5. Kim, Kyungmin, 2017. "Information about sellers' past behavior in the market for lemons," Journal of Economic Theory, Elsevier, vol. 169(C), pages 365-399.
    6. Marinescu, Ioana, 2017. "The general equilibrium impacts of unemployment insurance: Evidence from a large online job board," Journal of Public Economics, Elsevier, vol. 150(C), pages 14-29.
    7. Albrecht, James & Navarro, Lucas & Vroman, Susan, 2010. "Efficiency in a search and matching model with endogenous participation," Economics Letters, Elsevier, vol. 106(1), pages 48-50, January.
    8. Stefano Banfi & Benjamín Villena-Roldán, 2019. "Do High-Wage Jobs Attract More Applicants? Directed Search Evidence from the Online Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 37(3), pages 715-746.
    9. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, vol. 95(1), pages 25-49, March.
    10. Sushant Acharya & Shu Lin Wee, 2018. "Replacement Hiring," 2018 Meeting Papers 758, Society for Economic Dynamics.
    11. Coles, Melvyn G & Smith, Eric, 1998. "Marketplaces and Matching," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 239-254, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Directed Search with Phantom Vacancies
      by Christian Zimmermann in NEP-DGE blog on 2017-04-18 20:10:17

    Citations

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    Cited by:

    1. Karahan, Fatih & Mitman, Kurt & Moore, Brendan, 2019. "Individual and Market-Level Effects of UI Policies: Evidence from Missouri," IZA Discussion Papers 12805, Institute of Labor Economics (IZA).
    2. Sushant Acharya & Shu Lin Wee, 2018. "Replacement hiring and the productivity-wage gap," Staff Reports 860, Federal Reserve Bank of New York.
    3. 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.
    4. Stefano Banfi & Benjamin Villena-Roldan & Sekyu Choi, 2018. "Deconstructing job search behavior," 2018 Meeting Papers 368, Society for Economic Dynamics.
    5. Fatih Karahan & Kurt Mitman & Brendan Moore, 2019. "Micro and Macro Effects of UI Policies: Evidence from Missouri," Staff Reports 905, Federal Reserve Bank of New York.
    6. Bhole, Monica & Fradkin, Andrey & Horton, John, 2021. "Information About Vacancy Competition Redirects Job Search," SocArXiv p82fk, Center for Open Science.
    7. Stef Garasto & Jyldyz Djumalieva & Karlis Kanders & Rachel Wilcock & Cath Sleeman, 2021. "Developing experimental estimates of regional skill demand," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2021-02, Economic Statistics Centre of Excellence (ESCoE).
    8. Sushant Acharya & Shu Lin Wee, 2018. "Replacement Hiring," 2018 Meeting Papers 758, Society for Economic Dynamics.
    9. He, Chuan & Mau, Karsten & Xu, Mingzhi, 2021. "Trade Shocks and Firms Hiring Decisions: Evidence from Vacancy Postings of Chinese Firms in the Trade War," Labour Economics, Elsevier, vol. 71(C).
    10. Ehrenfried, Felix & Holzner, Christian, 2019. "Dynamics and endogeneity of firms’ recruitment behaviour," Labour Economics, Elsevier, vol. 57(C), pages 63-84.
    11. Altmann, Steffen & Glenny, Anita Marie & Mahlstedt, Robert & Sebald, Alexander, 2022. "The Direct and Indirect Effects of Online Job Search Advice," IZA Discussion Papers 15830, Institute of Labor Economics (IZA).
    12. Acharya, Sushant & Wee, Shu Lin, 2020. "On-the-job Search and the Productivity-Wage Gap," CEPR Discussion Papers 14430, C.E.P.R. Discussion Papers.

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    More about this item

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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