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Vacancy durations and entry wages: evidence from linked vacancy-employer-employee data

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  • Andreas Kettemann
  • Andreas I. Mueller
  • Josef Zweimüller

Abstract

This paper explores the relationship between the duration of a vacancy and the starting wage of a new job, using unusually informative data comprising detailed information on vacancies, the establishments posting the vacancies, and the workers eventually filling the vacancies. We find that vacancy durations are negatively correlated with the starting wage and that this negative association is particularly strong with the establishment component of the starting wage. We also confirm previous findings that growing establishments fill their vacancies faster. To understand the relationship between establishment growth, vacancy filling and entry wages, we calibrate a model with directed search and ex-ante heterogeneous workers and firms. We find a strong tension between matching the sharp increase in vacancy filling for growing firms and the response of vacancy filling to firm-level wages. We discuss the implications of this finding as well as potential resolutions.

Suggested Citation

  • Andreas Kettemann & Andreas I. Mueller & Josef Zweimüller, 2018. "Vacancy durations and entry wages: evidence from linked vacancy-employer-employee data," ECON - Working Papers 312, Department of Economics - University of Zurich.
  • Handle: RePEc:zur:econwp:312
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    References listed on IDEAS

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    1. Robert E. Hall & Andreas I. Mueller, 2018. "Wage Dispersion and Search Behavior: The Importance of Nonwage Job Values," Journal of Political Economy, University of Chicago Press, vol. 126(4), pages 1594-1637.
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    Citations

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    Cited by:

    1. Bhuller, Manudeep & Kostøl, Andreas & Vigtel, Trond Christian, 2019. "How Broadband Internet Affects Labor Market Matching," Memorandum 10/2019, Oslo University, Department of Economics.
    2. Kircher, Philipp A.T., 2020. "Search design and online job search – new avenues for applied and experimental research," Labour Economics, Elsevier, vol. 64(C).
    3. Haefke, Christian & Reiter, Michael, 2020. "Long Live the Vacancy," GLO Discussion Paper Series 654, Global Labor Organization (GLO).
    4. Carrillo-Tudela, Carlos & Gartner, Hermann & Leo, Kaas, 2020. "Recruitment Policies, Job-Filling Rates and Matching Efficiency," IAB Discussion Paper 202015, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Mongey, Simon & Violante, Giovanni L., 2019. "Macro Recruiting Intensity from Micro Data," CEPR Discussion Papers 14004, C.E.P.R. Discussion Papers.
    6. Christian Haefke & Michael Reiter, 2020. "Long Live the Vacancy," Working Papers 20200054, New York University Abu Dhabi, Department of Social Science, revised Sep 2020.
    7. Simon Mongey & Giovanni L. Violante, 2019. "Macro Recruiting Intensity from Micro Data," NBER Working Papers 26231, National Bureau of Economic Research, Inc.
    8. Haefke, Christian & Reiter, Michael, 2020. "Long Live the Vacancy," IHS Working Paper Series 22, Institute for Advanced Studies.
    9. Lennart Ziegler, 2020. "Skill Demand and Posted Wages. Evidence from Online Job Ads in Austria," Vienna Economics Papers 2002, University of Vienna, Department of Economics.
    10. Bhuller, Manudeep & Kostøl, Andreas R. & Vigtel, Trond C., 2020. "How broadband internet affects labor market matching," Working Paper 2020/1, Norges Bank.
    11. Satoshi Tanaka & Lawrence Warren & David Wiczer, 2020. "Earnings Growth, Job Flows and Churn," Working Papers 20-15, Center for Economic Studies, U.S. Census Bureau.
    12. Jesper Bagger & Francois Fontaine & Manolis Galenianos & Ija Trapeznikova, 2020. "Vacancies, Employment Outcomes and Firm Growth: Evidence from Denmark," Economics Working Papers 2020-04, Department of Economics and Business Economics, Aarhus University.

    More about this item

    Keywords

    Vacancy posting; vacancy duration; recruiting; search; wages;

    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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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