The Matching Process: Search or Mismatch

Nils Gottfries () and Karolina Stadin ()
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Karolina Stadin: The Ratio Institute and Uppsala Center for Labor Studies, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden, http://ratio.se/medarbetare/karolina-stadin/

No 279, Ratio Working Papers from The Ratio Institute

Abstract: We examine the matching process using monthly panel data for local labour markets in Sweden. We find that an increase in the number of vacancies has a very weak effect on the number of unemployed workers being hired: unemployed workers appear to be unable to compete for many available jobs. Vacancies are filled quickly and there is no (or only weak) evidence that high unemployment makes it easier to fill vacancies; hiring appears to be determined by labour demand while frictions and labour supply play small roles. These results indicate persistent mismatch in the Swedish labour market.

Keywords: structural unemployment; frictional unemployment; matching function; labour demand; labour supply (search for similar items in EconPapers)
JEL-codes: J23 J62 J63 J64 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2016-12-13
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Related works:
Working Paper: The Matching Process: Search or Mismatch? (2017)
Working Paper: THE MATCHING PROCESS:SEARCH OR MISMATCH? (2016)
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