Header

UZH-Logo

Maintenance Infos

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


Mueller, Andreas I; Osterwalder, Damian; Zweimüller, Josef; Kettemann, Andreas (2024). Vacancy durations and entry wages: evidence from linked vacancy-employer-employee data. Review of Economic Studies, 91(3):1807-1841.

Abstract

This article explores the relationship between the duration of a vacancy and the starting wage of a new job, using linked data on vacancies, the posting establishments, and the workers eventually filling the vacancies. The unique combination of large-scale, administrative worker, establishment, and vacancy data is critical for separating establishment- and job-level determinants of vacancy duration from worker-level heterogeneity. Conditional on observables, we find that vacancy duration is negatively correlated with the starting wage and its establishment component, with precisely estimated elasticities of −0.07 and −0.21, respectively. While the negative relationship is qualitatively consistent with search-theoretic models where firms use the wage as a recruiting device, these elasticities are small, suggesting that firms’ wage policies can account only for a small fraction of the variation in vacancy filling across establishments.

Abstract

This article explores the relationship between the duration of a vacancy and the starting wage of a new job, using linked data on vacancies, the posting establishments, and the workers eventually filling the vacancies. The unique combination of large-scale, administrative worker, establishment, and vacancy data is critical for separating establishment- and job-level determinants of vacancy duration from worker-level heterogeneity. Conditional on observables, we find that vacancy duration is negatively correlated with the starting wage and its establishment component, with precisely estimated elasticities of −0.07 and −0.21, respectively. While the negative relationship is qualitatively consistent with search-theoretic models where firms use the wage as a recruiting device, these elasticities are small, suggesting that firms’ wage policies can account only for a small fraction of the variation in vacancy filling across establishments.

Statistics

Citations

Dimensions.ai Metrics

Altmetrics

Downloads

0 downloads since deposited on 21 May 2024
0 downloads since 12 months

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > Economics and Econometrics
Uncontrolled Keywords:Vacancy posting, vacancy duration, vacancy yields, recruiting, search, wages
Scope:Discipline-based scholarship (basic research)
Language:English
Date:May 2024
Deposited On:21 May 2024 06:53
Last Modified:30 Jun 2024 01:41
Publisher:Oxford University Press
ISSN:0034-6527
OA Status:Closed
Publisher DOI:https://doi.org/10.1093/restud/rdad051
Related URLs:https://www.zora.uzh.ch/id/eprint/161628/