What Makes Hiring Difficult? Evidence from Linked Survey-Administrative Data

Antoine Bertheau, Birthe Larsen and Zeyu Zhao
Additional contact information
Birthe Larsen: Copenhagen Business School
Zeyu Zhao: University of Copenhagen

No 20/2023, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: We designed an innovative survey of firms and linked it to Danish administrative data to yield new insights about the factors that can influence firms’ hiring decisions. Several important findings stand out: (1) search and training frictions and economic uncertainty are as important as labor costs in hiring decisions ; (2) search and training frictions are more likely to affect younger and smaller firms; (3) uncertainty is more likely to affect hiring decisions in low-productivity firms; (4) thirty percent of firms prefer to hire already employed persons over the unemployed, because they believe that unemployed workers have lower abilities due to negative selection or skill depreciation during unemployment; and (5) these firms are more likely to report that labor market frictions and labor costs considerations discourage them from hiring.

Keywords: Hiring (search for similar items in EconPapers)
JEL-codes: J20 J21 (search for similar items in EconPapers)
Pages: 69 pages
Date: 2023-12-05
New Economics Papers: this item is included in nep-eur, nep-hrm and nep-lma
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://hdl.handle.net/11250/3106252 Full text (application/pdf)

Related works:
Working Paper: What Makes Hiring Difficult? Evidence from Linked Survey-Administrative Data (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:nhheco:2023_020

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Synne Stormoen ().