Directed Search with Phantom Vacancies

Susan Vroman

No 649, 2015 Meeting Papers from Society for Economic Dynamics

Abstract: Information persistence about already filled vacancies implies that old vacancies are likely to be obsolete or phantom vacancies. When ads for jobs stipulate the vacancy creation date, job-seekers apply for the different jobs so as to equalize matching odds across vacancy age. This search behavior leads them to over-apply to young vacancies. Finding a job of a given age creates phantom vacancy and a negative informational externality that affects all cohorts of vacancies after this age. Thus the magnitude of the externality decreases with the age of the vacancy filled. We calibrate the model on US labor market data. The magnitude of the externality is small, despite the fact that the contribution of phantom vacancies to overall frictions is large.

Date: 2015
New Economics Papers: this item is included in nep-dge
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Related works:
Working Paper: DIRECTED SEARCH WITH PHANTOM VACANCIES (2022)
Working Paper: Directed Search with Phantom Vacancies (2021)
Working Paper: Directed Search with Phantom Vacancies (2020)
Working Paper: Directed Search with Phantom Vacancies (2017)
Working Paper: Directed Search with Phantom Vacancies (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed015:649

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