Job Vacancy Rates in the Firm: An Empirical Analysis

Harry Holzer

No 3524, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper I present some evidence on the magnitudes and determinants of job vacancy rates at the firm level. The data are from a survey of firms in 1980 and 1982, as well as from 1980 Census data on industry and local area characteristics. The results show that overall job vacancy rates are low but there is substantial variation across firms, occupations, industries, and local areas. Unemployment rates, either local or aggregate, have negative effects on vacancy rates while average industry skill levels have positive effects, thus indicating the importance of the firm's demand for skills. Large and/or unionized firms have relatively low vacancy rates, which also account for the low vacancy rates of high-wage firms; and firms with high turnover and recent sales growth have higher vacancy rates. Thus, a variety of market conditions and firm characteristics influence vacancy rates at the firm level.

Date: 1990-12
Note: LS
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Published as Economica, Vol. 61, no. 241 (1994): 17-36.

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