Vacancies, Employment Outcomes and Firm Growth: Evidence from Denmark

33 Pages Posted: 12 Jun 2021

See all articles by Jesper Bagger

Jesper Bagger

University of London - Royal Holloway College

François Fontaine

University of Lille III; IZA Institute of Labor Economics

Manolis Galenianos

Royal Holloway, University of London

Ija Trapeznikova

University of London - Royal Holloway College

Abstract

We use comprehensive data from Denmark that combine online job advertisements with a matched employer-employee dataset and a firm-level dataset with information on revenues and value added to study the relationship between vacancy-posting and various firm outcomes. Posting a vacancy is associated with a 4.5 percentage point increase in a firm's hiring rate and two-thirds of the additional hiring occurs within two months. The response of hiring from employment is twice as large as the response of hiring from non-employment. Firms that are smaller, low-wage and fast-growing are associated with larger hiring responses and that response materializes faster at larger firms, low-wage firms and fast-growing firms. We also find that separations are associated with subsequent vacancy posting and this effect is stronger for separations to employment, consistent with replacement hiring and the presence of vacancy chains. Growth in revenue and value added strongly predict vacancy-posting, with negative shocks having a stronger effect than positive shocks and larger shocks having less-than-proportional responses.

JEL Classification: J23, J63

Suggested Citation

Bagger, Jesper and Fontaine, François and Galenianos, Manolis and Trapeznikova, Ija, Vacancies, Employment Outcomes and Firm Growth: Evidence from Denmark. IZA Discussion Paper No. 14436, Available at SSRN: https://ssrn.com/abstract=3865461 or http://dx.doi.org/10.2139/ssrn.3865461

Jesper Bagger (Contact Author)

University of London - Royal Holloway College ( email )

Senate House
Malet Street
London, TW20 0EX
United Kingdom

François Fontaine

University of Lille III ( email )

Domaine du Pont de bois
Villeneuve D'Ascq Cedex, 59653
France

IZA Institute of Labor Economics

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

Manolis Galenianos

Royal Holloway, University of London ( email )

Horton Building
Department of Economics
Egham, Surrey TW20 0EX
United Kingdom

HOME PAGE: http://www.manolis-galenianos.org/

Ija Trapeznikova

University of London - Royal Holloway College

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