Working Paper: CEPR ID: DP18365
Authors: Ihsaan Bassier; Alan Manning; Barbara Petrongolo
Abstract: We estimate the elasticity of vacancy duration with respect to posted wages, using data from the near-universe of online job adverts in the United Kingdom. Our research design identifies duration elasticities by leveraging firm-level wage policies that are plausibly exogenous to hiring difficulties on specific job vacancies, and control for job and market-level fixed-effects. Wage policies are defined based on external information on pay settlements, or on sharp, internally-defined, firm-level changes. In our preferred specifications, we estimate duration elasticities in the range -3 to -5, which are substantially larger than the few existing estimates.
Keywords: monopsony; wages
JEL Codes: J63; J64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Higher wages (J39) | Easier to fill vacancies (J63) |
| Higher wages (J39) | Decrease in vacancy duration (J69) |
| Elasticity of vacancy duration to wages (J69) | Firm-level wage policies (J38) |
| Firm-level wage policies (J38) | Easier to fill vacancies (J63) |