Ten Facts You Need To Know About Hiring

Samuel Mühlemann () and Mirjam Strupler Leiser ()
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Samuel Mühlemann: University of Munich
Mirjam Strupler Leiser: University of Bern
Authors registered in the RePEc Author Service: Samuel Muehlemann

No 9363, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We provide new empirical evidence regarding the magnitude and the determinants of a firm's costs required to fill a vacancy. The average costs required to fill a vacancy for a skilled worker in Switzerland amount to about 16 weeks of wage payments. The main components of the vacancy costs are initially low productivity, the formal instruction of a new hire (53 percent), disruption costs due to informal instruction of new hires (26 percent), and search costs (21 percent). Furthermore, hiring costs for small firms are associated with labor market tightness (i.e., the vacancy-unemployment ratio).

Keywords: adaptation cost; disruption cost; hiring cost; search cost; vacancy-unemployment ratio (search for similar items in EconPapers)
JEL-codes: J32 J63 M53 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2015-09
New Economics Papers: this item is included in nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published - published as "Hiring costs and labor market tightness" in: Labour Economics, 2018, 52, 122-131.

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Working Paper: Ten Facts You Need To Know About Hiring (2015)
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