The Quality‐Weighted Matching Function: Did the German Labor Market Reforms Trade‐Off Efficiency against Job Quality?

Hermann Gartner, Thomas Rothe and Enzo Weber

Journal of Money, Credit and Banking, 2024, vol. 56, issue 7, 1905-1914

Abstract: We evaluate the quantity–quality trade‐off on the labor market by estimating an augmented matching function weighting the matches by quality measures. We use the approach to evaluate the German labor market reforms conducted between 2003 and 2005. Indeed, we find a significant quantity–quality trade‐off. However, even after controlling for job quality, a good half of the positive effect of the reforms on matching efficiency remains.

Date: 2024
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https://doi.org/10.1111/jmcb.13064

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Working Paper: The Quality-Weighted Matching Function: Did the German Labour Market Reforms Trade off Efficiency against Job Quality? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:56:y:2024:i:7:p:1905-1914

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