Vacancies, employment outcomes and firm growth: Evidence from Denmark

Jesper Bagger, Francois Fontaine, Manolis Galenianos and Ija Trapeznikova

Labour Economics, 2022, vol. 75, issue C

Abstract: We use comprehensive data from Denmark that merge online job advertisements with a matched employer-employee dataset and a firm-level dataset with information on revenues and value added to study the relationship between vacancy-posting and various firm outcomes. Vacancy-posting is associated with a 4.4 percentage point increase in a firm’s hiring rate and 85% of the additional hiring occurs within two months. The response of hiring from employment is twice as large as the response of hiring from non-employment. Firms that are smaller, low-wage and fast-growing are associated with larger hiring responses and that response materializes faster at larger firms, low-wage firms and fast-growing firms. We also find that separations are associated with subsequent vacancy-posting and this effect is stronger for separations to employment, consistent with replacement hiring and the presence of vacancy chains. Growth in revenue and value added strongly predict vacancy-posting, with negative shocks having a stronger effect than positive shocks and larger shocks having less-than-proportional responses.

Keywords: Vacancies; Hiring; Separations; Employment growth; Firm growth; Value added; Revenue (search for similar items in EconPapers)
JEL-codes: J23 J63 (search for similar items in EconPapers)
Date: 2022
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Related works:
Working Paper: Vacancies, employment outcomes and firm growth: Evidence from Denmark (2022)
Working Paper: Vacancies, employment outcomes and firm growth: Evidence from Denmark (2022)
Working Paper: Vacancies, Employment Outcomes and Firm Growth: Evidence from Denmark (2021)
Working Paper: Vacancies, Employment Outcomes and Firm Growth: Evidence from Denmark (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:75:y:2022:i:c:s092753712100138x

DOI: 10.1016/j.labeco.2021.102103

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