Working Paper: CEPR ID: DP13249
Authors: Andreas Kettemann; Andreas I. Mueller; Josef Zweimller
Abstract: This paper explores the relationship between the duration of a vacancy and the startingwage of a new job, using unusually informative data comprising detailed informationon vacancies, the establishments posting the vacancies, and the workers eventually fillingthe vacancies. We find that vacancy durations are negatively correlated with thestarting wage and that this negative association is particularly strong with the establishmentcomponent of the starting wage. We also confirm previous findings that growingestablishments fill their vacancies faster. To understand the relationship between establishmentgrowth, vacancy filling and entry wages, we calibrate a model with directedsearch and ex-ante heterogeneous workers and firms. We find a strong tension betweenmatching the sharp increase in vacancy filling for growing firms and the response ofvacancy filling to firm-level wages. We discuss the implications of this finding as wellas potential resolutions.
Keywords: vacancy posting; vacancy duration; recruiting; search; wages
JEL Codes: E24; J31; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| vacancy durations (J63) | entry wages (J31) |
| vacancy durations (J63) | establishment component of starting wage (J31) |
| high-wage establishments (J31) | vacancy durations (J63) |
| vacancy durations (J63) | wage responses (J31) |