Match efficiency and firms' hiring standards

• 成果类型: Article
• 署名作者: Sedlacek, Petr
• 署名单位: University of Bonn
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2013.10.001
• 发表日期: 2014
• 页码: 123-133
• 关键词: Match efficiency; estimation; Endogenous separations; Firms' hiring standards

摘要

During the last recession, new hires were lower than what would be predicted by a standard matching function and the observed ratio of searching workers and firms. This paper first estimates U.S. match efficiency as an exogenous residual in the matching function using a simple search and matching model. It finds match efficiency to be procyclical and to account for about 1/4 of unemployment increases during the most severe recessions. Second, this paper proposes a model with endogenous separations and firing costs that endogenizes match efficiency, which is driven by firms' hiring standards. The model can explain almost 1/2 of the variation in the initial estimate of match efficiency. (C) 2013 Elsevier B.V. All rights reserved.