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


Kettemann, Andreas; Mueller, Andreas I; Zweimüller, Josef (2018). Vacancy durations and entry wages: evidence from linked vacancy-employer-employee data. Working paper series / Department of Economics 312, University of Zurich.

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.

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.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:E24, J31, J63
Uncontrolled Keywords:Vacancy posting, vacancy duration, recruiting, search, wages
Language:English
Date:December 2018
Deposited On:15 Jan 2019 12:38
Last Modified:25 Sep 2019 00:05
Series Name:Working paper series / Department of Economics
Number of Pages:71
ISSN:1664-7041
Additional Information:Dieses Working Paper ist auch publiziert als CEPR Discussion Paper DP13249, CESifo Working Paper No. 7351, IZA Discussion Paper No. 11852 und als NBER Working Paper No. 25118 (siehe verknüpfte URLs).
OA Status:Green
Official URL:http://www.econ.uzh.ch/static/workingpapers.php?id=991
Related URLs:https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13249
http://www.cesifo-group.de/DocDL/cesifo1_wp7351.pdf
https://www.iza.org/publications/dp/11852/vacancy-durations-and-entry-wages-evidence-from-linked-vacancy-employer-employee-data
https://www.nber.org/papers/w25118

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