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

73 Pages Posted: 21 Feb 2019

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

Multiple version iconThere are 5 versions of this paper

Date Written: 2018

Abstract

This paper explores the relationship between the duration of a vacancy and the starting wage of a new job, using unusually informative data comprising detailed information on vacancies, the establishments posting the vacancies and the workers eventually filling the vacancies. We find that vacancy durations are negatively correlated with the starting wage and that this negative association is particularly strong with the establishment component of the starting wage. We also confirm previous findings that growing establishments fill their vacancies faster. To understand the relationship between establishment growth, vacancy filling and entry wages, we calibrate a model with directed search and ex-ante heterogeneous workers and firms. We find a strong tension between matching the sharp increase in vacancy filling for growing firms and the response of vacancy filling to firm-level wages. We discuss the implications of this finding as well as potential resolutions.

Keywords: vacancy posting, vacancy duration, recruiting, search wages

JEL Classification: E240, J310, J630

Suggested Citation

Kettemann, Andreas and Mueller, Andreas I. and Zweimueller, Josef, Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data (2018). CESifo Working Paper No. 7351, Available at SSRN: https://ssrn.com/abstract=3338678

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 )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
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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