Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data

77 Pages Posted: 8 Oct 2018 Last revised: 18 Feb 2023

See all articles by Andreas Kettemann

Andreas Kettemann

University of Zurich - Department of Economics

Andreas I. Mueller

University of Texas at Austin - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Josef Zweimüller

University of Zurich - Department of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

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Date Written: October 2018

Abstract

This paper explores the relationship between the duration of a vacancy and the starting wage of a new job, using linked data on vacancies, the posting establishments and the workers eventually filling the vacancies. The unique combination of large-scale, administrative worker-, establishment- and vacancy-data is critical for separating establishment- and job-level determinants of vacancy duration from worker-level heterogeneity. Conditional on worker observables, we find that vacancy duration is negatively correlated with the starting wage and its establishment component, with precisely estimated elasticities of -0.04 and -0.10, respectively. While the negative relationship is qualitatively consistent with models of wage posting, these elasticities are small, suggesting that firms’ wage policies can account only for a small fraction of the variation in vacancy filling across establishments.

Suggested Citation

Kettemann, Andreas and Mueller, Andreas I. and Zweimueller, Josef, Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data (October 2018). NBER Working Paper No. w25118, Available at SSRN: https://ssrn.com/abstract=3262353

Andreas Kettemann (Contact Author)

University of Zurich - Department of Economics ( email )

Plattenstrasse 14
Zürich, 8032
Switzerland

Andreas I. Mueller

University of Texas at Austin - Department of Economics ( email )

Austin, TX 78712
United States

National Bureau of Economic Research (NBER) ( email )

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Cambridge, MA 02138
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IZA Institute of Labor Economics ( email )

P.O. Box 7240
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Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Josef Zweimueller

University of Zurich - Department of Economics ( email )

Zuerich, 8006
Switzerland
+411 634 3724 (Phone)
+411 634 4907 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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