Employer Size: The Implications for Search, Training, Capital Investment, Starting Wages, and Wage Growth

Barron, John M.; Black, Dan A.; Loewenstein, Mark A.

doi:10.1086/298138

Cited by 229 publications

(149 citation statements)

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“…Barron et al (1985), Barron et al (1987) and Burdett & Cunningham (1998) study the determinants of employer search measures using the same data set as this paper. van Ours & Ridder (1992 and Abbring & van Ours (1994) analyze Dutch recruitment data and find evidence for simultaneous rather than sequential search by firms.…”

Section: Figure 1: Related Literaturementioning

confidence: 99%

Applications and Interviews: A Structural Analysis of Two-Sided Simultaneous Search

Wolthoff

2012

SSRN Journal

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Most of the literature analyzing equilibrium effects of labor market policies assumes bilateral meetings between workers and firms. This ignores the frictions that arise when workers and firms meet in a multilateral way and cannot coordinate their application and hiring decisions. I analyze the magnitude of these frictions. For this purpose, I present an equilibrium search model of the labor market with an endogenous number of contacts between workers and firms. Firms post a wage and a recruitment technology that determines how many applicants they will interview. After observing these contracts, workers decide to which firms to apply. Sending more applications and interviewing more applicants are both costly activities but increase the probability to match. In equilibrium, contract dispersion arises endogenously and workers spread their applications over the different types of contracts. Estimation of the model on the Employment Opportunities Pilot Projects data set provides values for the cost of an application and the cost of an interview. These estimates are used to determine the output loss compared to a Walrasian world. Frictions on the worker and the firm side reduce output by approximately 1% each. There is a potential role for activating labor market policies, because I show that for the estimated parameter values welfare can be improved if unemployed workers increase their search intensity.

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Section: Figure 1: Related Literaturementioning

confidence: 99%

Applications and Interviews: A Structural Analysis of Two-Sided Simultaneous Search

Wolthoff

2012

SSRN Journal

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“…Baron et al (1987), Booth (1993), and Bassanini et al (2005) showed that training propensity is much greater among larger organizations since offering training courses to employees incurs fixed costs that are generally paid by the employer. Since large organizations are more likely to employ a larger number of treated workers, the total benefit of extra training courses to this group will also be larger and therefore they are better capable to meet the fixed costs of the training provided.…”

Section: Introductionmentioning

confidence: 99%

The effects of pension rights and retirement age on training participation: Evidence from a natural experiment

2010

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Evidence from a Natural Experiment * This paper uses a natural experiment approach to identify the effects of an exogenous change in future pension benefits on workers' training participation. We use unique matched survey and administrative data for male employees in the Dutch public sector who were born in 1949 or 1950. Only the latter were subject to a major pension reform that diminished their pension rights. We find that this exogenous shock to pension rights postpones expected retirement and increases participation in training courses among older employees, although exclusively for those employed in large organizations.JEL Classification: J14, J24, J26

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“…However, for some of the firm level variables commonly used in the literature: firm size (see: Adams (1970); Schumacher and Baldwin (2000); Holtmann and Idson (1991); Brown (1990); Dunne and Schmitz (1995); Barron, Black, and Loewenstein (1987)) and `difficulty of the job' (Loewenstein and Spletzer (1999)) we found minuscule coefficients. The first result suggests that, once we control for differences in the organisational practices implemented in the workplace, firm size per se has a negligible effect.…”

Section: Resultsmentioning

confidence: 65%

Disability, Health and Access to Training

Fumagalli¹

2009

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Employer Size: The Implications for Search, Training, Capital Investment, Starting Wages, and Wage Growth

Cited by 229 publications

References 6 publications

Applications and Interviews: A Structural Analysis of Two-Sided Simultaneous Search

Applications and Interviews: A Structural Analysis of Two-Sided Simultaneous Search

The effects of pension rights and retirement age on training participation: Evidence from a natural experiment

Disability, Health and Access to Training

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