The Establishment-Level Behavior of Vacancies and Hiring

51 Pages Posted: 10 Aug 2009 Last revised: 9 Oct 2009

See all articles by Steven J. Davis

Steven J. Davis

University of Chicago; National Bureau of Economic Research (NBER)

R. Jason Faberman

Federal Reserve Bank of Chicago; Bureau of Labor Statistics - Office of Employment and Unemployment Statistics

John Haltiwanger

University of Maryland - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Multiple version iconThere are 2 versions of this paper

Date Written: July 20, 2009

Abstract

The authors study vacancies, hires, and vacancy yields (success rate in generating hires) in the Job Openings and Labor Turnover Survey, a large representative sample of U.S. employers. The authors also develop a simple framework that identifies the monthly flow of new vacancies and the job-filling rate for vacant positions, the employer counterpart to the job-finding rate for unemployed workers. The job-filling rate moves counter to employment at the aggregate level but rises steeply with employer growth rates in the cross section. It falls with employer size, rises with the worker turnover rate, and varies by a factor of four across major industry groups. The authors' analysis also indicates that more than 1 in 6 hires occur without benefit of a vacancy, as defined by JOLTS. These findings provide useful inputs for assessing, developing, and calibrating theoretical models of search, matching, and hiring in the labor market.

Keywords: vacancies, job openings, job-filling rate, vacancy duration, hiring, labor

JEL Classification: D21, E24, J6

Suggested Citation

Davis, Steven J. and Faberman, R. Jason and Haltiwanger, John C., The Establishment-Level Behavior of Vacancies and Hiring (July 20, 2009). FRB of Philadelphia Working Paper No. 09-14. Available at SSRN: https://ssrn.com/abstract=1444836 or http://dx.doi.org/10.2139/ssrn.1444836

Steven J. Davis (Contact Author)

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Bureau of Labor Statistics - Office of Employment and Unemployment Statistics ( email )

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John C. Haltiwanger

University of Maryland - Department of Economics ( email )

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