Vacancies, Employment Outcomes and Firm Growth: Evidence from Denmark

Jesper Bagger (), Francois Fontaine, Manolis Galenianos and Ija Trapeznikova
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Jesper Bagger: Royal Holloway, University of London and Dale T. Mortensen Centre, Aarhus University, Postal: Department of Economics, Royal Holloway, University of London, Egham, Surrey, TW20 0EX, United Kingdom

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: We use a comprehensive dataset from Denmark that combines online job advertisements with a matched employer-employee dataset and a firm-level dataset with value added and revenue information to study the relationship between vacancy-posting and various firm outcomes. We find that posting a vacancy significantly increases a firm's hiring rate, and that two-third of the additional hiring occurs in the same quarter while one-third occurs with one quarter lag. The majority of the effect is accounted for by hiring from employment. Small and slow-growth firms show greater hiring responses and the hiring response of high-productivity firms takes longer to materialize. We find that separations that are likely associated with quits predict vacancy posting, consistent with replacement hiring and vacancy chains. Growth in value added and revenue has a strong positive effect on vacancy posting but only when shocks are permanent - transitory shocks do not affect vacancy posting.

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)
Pages: 45
Date: 2020-05-15
New Economics Papers: this item is included in nep-eur, nep-hrm, nep-lab and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://repec.econ.au.dk/repec/afn/wp/20/wp20_04.pdf (application/pdf)

Related works:
Journal Article: 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 (2022)
Working Paper: Vacancies, Employment Outcomes and Firm Growth: Evidence from Denmark (2021)
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