Macro Recruiting Intensity from Micro Data

43 Pages Posted: 7 Oct 2019

See all articles by Simon Mongey

Simon Mongey

University of Chicago

Gianluca Violante

Princeton University

Multiple version iconThere are 2 versions of this paper

Date Written: September 2019

Abstract

We merge QCEW and JOLTS microdata to study the recruiting intensity of firms in the cross section and over time. Vast establishment-level heterogeneity in vacancy filling rates is entirely explained by differences in gross hiring rates. Through the lens of standard theory, we aggregate firm-level decisions into an measure of aggregate recruiting intensity (ARI). Procyclicality of ARI is primarily due to cutting recruiting effort in slack labor markets. Given this we provide an ARI index easily computable from publicly available macroeconomic data. Declining ARI

in the Great Recession accounted for much of the increase in unemployment, but little of its persistence.

Keywords: Aggregate Matching Efficiency, Firm Heterogeneity, Recruiting Intensity, unemployment, Vacancies

Suggested Citation

Mongey, Simon and Violante, Gianluca, Macro Recruiting Intensity from Micro Data (September 2019). CEPR Discussion Paper No. DP14004. Available at SSRN: https://ssrn.com/abstract=3464533

Simon Mongey (Contact Author)

University of Chicago ( email )

Gianluca Violante

Princeton University ( email )

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