Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Random and stock-flow models of labour market matching - Swedish evidence
() and Kerstin Johansson
Abstract: In this paper we estimate aggregate matching functions
taking advantage of a rich data base that enables us to compute
observations on the variables in the matching function at (virtually) any
frequency to assess the importance of the time aggregation problem. We also
generate stocks, outflows and inflows of vacancies and job seekers to shed
light on the importance of stock-slow matching. Finally, we assess the
contribution of labour market programme participants to matching.
evidence rejects random matching. More precisely, we find that a
non-trivial fraction of new job seekers match instantly (within the first
week), that stocks of "old" vacancies and job seekers do not contribute
significantly to matching and that the inflow of vacancies matches with the
lagged stock of job seekers. Our results also suggest that labour market
programme participants contribute to matching to a lesser extent than
openly unemployed job seekers.
We also find that the use of lagged
stocks as right-hand side variables in matching functions (i.e., ignoring
the within-period inflow of job seekers and vacancies) gives lower
estimates of matching elasicities and that this is more pronounced the
lower the measurement frequency.
Keywords: Stock flow matchíng; time aggregation; (follow links to similar papers)
JEL-Codes: J64; (follow links to similar papers)
27 pages, April 12, 2007
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Monica Fällgren ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom