Vacancy Durations and Entry Wages: Evidence from Linked Vacancy–Employer–Employee Data

Andreas Mueller, Damian Osterwalder, Josef Zweimüller and Andreas Kettemann

The Review of Economic Studies, 2024, vol. 91, issue 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.

Keywords: Vacancy posting; Vacancy duration; Vacancy yields; Recruiting; Search; Wages (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data (2018)
Working Paper: Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data (2018)
Working Paper: Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data (2018)
Working Paper: Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data (2018)
Working Paper: Vacancy durations and entry wages: evidence from linked vacancy-employer-employee data (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:oup:restud:v:91:y:2024:i:3:p:1807-1841.

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