Working Paper: CEPR ID: DP14748
Authors: Lena Hensvik; Thomas Le Barbanchon; Roland Rathelot
Abstract: This paper measures the job-search responses to the COVID-19 pandemic using realtime data on vacancy postings and job ad views on Sweden’s largest online job board. First, new vacancy postings drop by 40%, similar to the US. Second, job seekers respond by searching less intensively, to the extent that effective labour market tightness increases during the first three months after the COVID outbreak. Third, they redirect their search towards less severely hit occupations, beyond what changes in vacancies would predict. Overall, these job search responses have the potential to amplify the labour demand shock.
Keywords: coronavirus; search intensity; search direction; labour demand shock; job vacancies; online job board
JEL Codes: J22; J23; J21; J62; J63; J64; E24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| shock to vacancies (J63) | reduced search effort (D83) |
| covid19 crisis (H12) | job search intensity (J68) |
| job seekers redirecting search (J68) | amplify labor demand shock (J23) |
| job search intensity (J68) | labor market tightness (J20) |