Work

Vacancy Duration and Wages

Year: 2025

Type: article

Abstract: We estimate the elasticity of vacancy duration with respect to posted wages, using data from the near-universe of online job adverts in the United Kingdom. Our research design leverages firm-level wage policies that are plausibly exogenous to hiring difficulties on specific job vacancies, and controls for job and marketlevel fixed-effects. Wage policies are defined based on external information on pay settlements, or on sharp, internally-defined, firm-level changes. In our preferred specifications, we estimate duration elasticities in the range −3 to −5, which are substantially larger than the few existing estimates.

Source: The Review of Economics and Statistics

DOI: 10.1162/rest_a_01580

Authors: Ihsaan Bassier, Alan Manning, Barbara Petrongolo

Institutions: University of Surrey, London School of Economics and Political Science, University of Oxford

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

Funders: London School of Economics and Political Science, University of Oxford, University of Glasgow, Economic and Social Research Council