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Does population density matter in the matching process of heterogeneous job seekers and vacancies?

  • Jukka Petteri Lahtonen

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  • Sanna-Mari Hynninen

    ()

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    This paper analyses the matching process of job seekers and vacant jobs in local labour markets. We investigate how the education level of job seekers and education requirements of vacancies match together in the areas of Local Labour Offices (LLOs), and what is the role of population density in that process. The data set is temporally, spatially, by education level of job seekers and by education requirements of vacancies highly disaggregated monthly data from 146 LLOs in Finland over 14 years. We find differences in the abilities of local labour markets to form successful matches at given levels of inputs. These differences can be explained partly by population density. We control for the heterogeneity of both sides of the labour market in our models allowing different employability for job seekers with different education levels and different filling rates for vacancies with different education requirements. Our results suggest that education increases successful matches only in markets with certain characteristics.

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    File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa05/papers/438.pdf
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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p438.

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    Date of creation: Aug 2005
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    Handle: RePEc:wiw:wiwrsa:ersa05p438
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    1. Turon, Helene & Simon Burgess, 2003. "Unemployment equilibrium and on-the-job search," Royal Economic Society Annual Conference 2003 208, Royal Economic Society.
    2. Wall, Howard & Zoega, Gylfi, 1997. "The British Beveridge Curve: A Tale of Ten Regions," CEPR Discussion Papers 1771, C.E.P.R. Discussion Papers.
    3. Fahr, René & Sunde, Uwe, 2001. "Disaggregate Matching Functions," IZA Discussion Papers 335, Institute for the Study of Labor (IZA).
    4. van Ours, Jan C., 1995. "An empirical note on employed and unemployed job search," Economics Letters, Elsevier, vol. 49(4), pages 447-452, October.
    5. Coles, Melvyn G & Smith, Eric, 1996. "Cross-Section Estimation of the Matching Function: Evidence from England and Wales," Economica, London School of Economics and Political Science, vol. 63(252), pages 589-97, November.
    6. Wahba, Jackline & Zenou, Yves, 2004. "Density, Social Networks and Job Search Methods: Theory and Application to Egypt," Working Paper Series 629, Research Institute of Industrial Economics.
    7. Burgess, Simon M, 1993. "A Model of Competition between Unemployed and Employed Job Searchers: An Application to the Unemployment Outflow Rate in Britain," Economic Journal, Royal Economic Society, vol. 103(420), pages 1190-204, September.
    8. Patricia M. Anderson & Simon M. Burgess, 1995. "Empirical Matching Functions: Estimation and Interpretation Using Disaggregate Data," NBER Working Papers 5001, National Bureau of Economic Research, Inc.
    9. Hoyt Bleakley & Jeffrey C. Fuhrer, 1997. "Shifts in the Beveridge Curve, job matching, and labor market dynamics," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 3-19.
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