Worker Selection, Hiring, and Vacancies
American Economic Journal: Macroeconomics
vol. 9,
no. 1, January 2017
(pp. 88-127)
Abstract
This paper incorporates worker selection into a random matching model with multi-worker firms. Unlike the standard Diamond-Mortensen-Pissarides (DMP) model, the extended model is compatible with cross-sectional behavior of vacancy yields, which rise with employment growth and worker turnover, but fall with establishment size. Using calibrated versions of the standard and worker selection models, I show that accounting for these patterns has quantitatively important policy implications. I also compare the worker selection and the directed search models. While both models account for these patterns equally well, they differ with regard to labor market policy.Citation
Baydur, Ismail. 2017. "Worker Selection, Hiring, and Vacancies." American Economic Journal: Macroeconomics, 9 (1): 88-127. DOI: 10.1257/mac.20140260Additional Materials
JEL Classification
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- J23 Labor Demand
- J63 Labor Turnover; Vacancies; Layoffs
- J64 Unemployment: Models, Duration, Incidence, and Job Search
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