Vacancy duration and wages
Bassier, Ihsaan ; Manning, Alan ; Petrongolo, Barbara
Institute of Labor Economics, Bonn
IZA - Bonn
2023
47 p.
wages ; wage policy ; labour supply ; labour market
Discussion Paper
16371
Wages and wage payment systems
https://docs.iza.org/dp16371.pdf
English
Bibliogr.
"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."
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