Randomness or stock–flow: which mechanism describes labour market matching in Poland?

Abstract

I identify which theoretical model (random, stock-flow, or job queuing) best describes the matching mechanism in the labour market in Poland. The purpose of this work is to formulate policy recommendations aimed at increasing the number of matches. I use monthly registered unemployment data for the period January 1999-June 2013 and econometrically correct for temporal aggregation bias in the data. I extend known solutions and apply them directly to a job queuing model. Job seekers (from the pool) seek work among old and new job posts, but only a small fraction of the newly unemployed individuals find work quickly. Vacancies are the driving force in aggregate hiring, but the inflow is more important than the stock. The random model has greater explanatory power, although the results do not negate the nonrandom model. Hence, better information and higher inflows (especially of job offers) should facilitate matching.

Spatial matching on the urban labor market: estimates with unique micro data

“…Similarly, as Galecka et al ( 2017 ) proved, spatial interactions are stronger for stock than for inflows 6 in the case of Poland. The dependency is also visible in our dataset (Table 3 )—correlations are significant rather for the unemployment rate than the vacancies inflow rate.…”

“…Further developments of this basic model consider a so-called flow approach in which besides stocks we include flows of unemployed and vacancies: (Blanchard and Diamond 1994 ). We can also distinguish mixed models that include values of a single stock or flows: (Gałecka-Burdziak 2017 ). These models can be useful in modeling the job search process when we can easily assume that stock of unemployed trade with the inflow of new vacancies.…”

“…The approach is in contrast to the majority of studies that utilize only PES that is highly underestimated in terms of vacancies (e.g. Feng and Hu 2013 , Gałecka-Burdziak 2017 ). Therefore, our data provide a reliable insight into the supply and demand of the local labor market in each of its spatial units and constitute the basis for the analysis.…”

Labor Hoarding: An Old Phenomena in Modern Times? Case Study for Eu Countries

“…Analyses at the company level focus on the methods of obtaining employees (Cassell et al, 2002;Day & Rodgers, 2015;Dawson et al, 2017), determining salary level (Card et al, 2016;Lopes de Melo, 2018), assessing the impact of technological progress on the structure of employment in companies (Arntz et al, 2016;Frey & Osborne, 2017;Olkiewicz, 2015). In macroeconomic terms, the most frequently discussed issues concern the flexibility of working time (Wilthagen & Tros, 2004;Chen et al, 2019), the minimum wage (Blanchard, 2004), labor market equilibrium (Blanchard & Landier, 2002;Gałecka-Burdziak, 2017) and work productivity (Boeri & Garibaldi, 2005a;Nitoi & Pochea, 2016;Stone, 1923;Quiggin, 2011;Klinger & Weber, 2019). The functioning of labor market, both in the micro-and macroeconomic context, depends on the solutions used in labor market institutions (Jiménez-Rodríguez & Russo, 2012;Boeri, 2011).…”