Vacancy Durations and Entry Wages: Evidence from Linked Vacancy-Employer-Employee Data

Abstract

This paper explores the relationship between the duration of a vacancy and the starting wage of a new job, using unusually informative data comprising detailed information on vacancies, the establishments posting the vacancies, and the workers eventually filling the vacancies. We find that vacancy durations are negatively correlated with the starting wage and that this negative association is particularly strong with the establishment component of the starting wage. We also confirm previous findings that growing establishments fill their vacancies faster. To understand the relationship between establishment growth, vacancy filling and entry wages, we calibrate a model with directed search and ex-ante heterogeneous workers and firms. We find a strong tension between matching the sharp increase in vacancy filling for growing firms and the response of vacancy filling to firm-level wages. We discuss the implications of this finding as well as potential resolutions.

Skill Demand and Wages. Evidence from Linked Vacancy Data

“…The positive effect of skill requirements on both wages and vacancy duration is consistent with previous evidence by Mueller et al (2020). Using the same vacancy database for an earlier period, the study estimates a positive raw elasticity between starting wages and filling duration of vacancies.…”

“…Two recent studies analyze data on vacancies from the Austrian public employment service. Lalive et al (2015) use the job listings to study market externalities of unemployment insurance programs, and Mueller et al (2020) examine the impact of vacancy duration on starting wages. 1 Job advertisements are also increasingly used to derive skill measures and analyze the impact of skill differences in the labor market (Deming and Kahn, 2018;Atalay et al, 2020;Deming and Noray, 2020;Modestino et al, 2020).…”

Macro Recruiting Intensity from Micro Data

“…DFH exploited establishment-level JOLTS data to document a great deal of heterogeneity in recruiting intensity across firms and, in particular, a strong positive relationship between the vacancy yield (the success rate of a vacancy) and the hiring rate in the cross section. 2 Their work has spurred new interest on the topic, in terms of both measurement from microdata (see working papers by Mueller, Kettemann, and Zweimuller, 2018;Carrillo-Tudela, Kaas, and Gartner, 2018;Lochner, Merkl, Stuber, and Gurtzgen, 2019) and theoretical equilibrium modelling (Kaas and Kircher, 2015;Gavazza, Mongey, and Violante, 2018;Leduc and Liu, 2019). Our paper contributes to this line of research.…”

Design and Development Employee Payroll Information Systems in Indeks Media Teknologi Inc.

“…Therefore we need a system that provides convenience in planning and development in order to increase the operational performance of Indeks Media Teknologi Inc. already has a payroll system for employees, but the existing system has several shortcomings that allow for the development of a better system [4,5]. Seeing the performance of the current employee salary data processing, namely: Employee data entry is multiuser based but cannot be used together on different computers (networks) [6], Employee salary deductions can only be deducted once in one paycheck [4,7,8]. If we want to deduct wages more than once, the total deduction of wages must be corrected and adjusted to the correct amount, the deduction information is incomplete because it only displays the total deductions from wages [9,10].…”