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

Andreas Kettemann (), Andreas Mueller and Josef Zweimüller ()
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Andreas Kettemann: University of Zurich

No 11852, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper explores the relationship between the duration of a vacancy and the starting wage of a new job, using unusually informative data comprising detailed information on vacancies, the establishments posting the vacancies and the workers eventually filling the vacancies. We find that vacancy durations are negatively correlated with the starting wage and that this negative association is particularly strong with the establishment component of the starting wage. We also confirm previous findings that growing establishments fill their vacancies faster. To understand the relationship between establishment growth, vacancy filling and entry wages, we calibrate a model with directed search and ex-ante heterogeneous workers and firms. We find a strong tension between matching the sharp increase in vacancy filling for growing firms and the response of vacancy filling to firm-level wages. We discuss the implications of this finding as well as potential resolutions.

Keywords: vacancy posting; vacancy duration; recruiting; search; wages (search for similar items in EconPapers)
JEL-codes: E24 J31 J63 (search for similar items in EconPapers)
Pages: 73 pages
Date: 2018-09
New Economics Papers: this item is included in nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Published - published in: Review of Economic Studies, 2024, 91 (3), 1807-1841

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https://docs.iza.org/dp11852.pdf (application/pdf)

Related works:
Journal Article: Vacancy Durations and Entry Wages: Evidence from Linked Vacancy–Employer–Employee Data (2024)
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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