Estimations of Occupational and Regional Matching Efficiencies Using Stochastic Production Frontier Models

25 Pages Posted: 8 Sep 2002

See all articles by Rene Fahr

Rene Fahr

University of Paderborn; IZA Institute of Labor Economics

Uwe Sunde

Ludwig Maximilian University of Munich

Date Written: August 2002

Abstract

By applying a stochastic production frontier approach to the matching process of unemployed and vacancies, this paper provides novel detailed insights into the process of job creation. For different labor markets as defined by occupation and region, the methodology produces estimates of the relative importance of demand and supply factors for the creation of new jobs, and of the overall efficiency of job creation. Some crucial determinants of the overall matching efficiency are identified and analyzed. This allows to make differentiated statements about the appropriateness of labor market policies, and therefore provides policy makers with novel relevant information.

Keywords: Matching Efficiency, Stochastic Frontier, Occupational Unemployment, Regional Unemployment

JEL Classification: J64, C24

Suggested Citation

Fahr, Rene and Sunde, Uwe, Estimations of Occupational and Regional Matching Efficiencies Using Stochastic Production Frontier Models (August 2002). IZA Discussion Paper No. 552. Available at SSRN: https://ssrn.com/abstract=327561

Rene Fahr

University of Paderborn ( email )

Warburger Str. 100
D-33098 Paderborn
Germany
+49 5251 60 3692 (Phone)

HOME PAGE: http://www.quantitative-cg.de

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 38 94 0 (Phone)
+49 228 38 94 510 (Fax)

Uwe Sunde (Contact Author)

Ludwig Maximilian University of Munich ( email )

Geschwister-Scholl-Platz 1
Munich, Bavaria 80539
Germany

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