Scandinavian Working Papers in Economics
Ratio Working Papers,
The Ratio Institute
No 279: The Matching Process: Search or Mismatch
Nils Gottfries () and Karolina Stadin ()
Additional contact information
Nils Gottfries: Uppsala University, UCLS, CESifo and IZA, Postal: Kyrkogårdsgatan 10B, Uppsala, Sweden
Karolina Stadin: The Ratio Institute and Uppsala Center for Labor Studies, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Abstract: We examine the matching process using monthly panel data for local labour markets in Sweden. We find that an increase in the number of vacancies has a very weak effect on the number of unemployed workers being hired: unemployed workers appear to be unable to compete for many available jobs. Vacancies are filled quickly and there is no (or only weak) evidence that high unemployment makes it easier to fill vacancies; hiring appears to be determined by labour demand while frictions and labour supply play small roles. These results indicate persistent mismatch in the Swedish labour market.
Keywords: structural unemployment; frictional unemployment; matching function; labour demand; labour supply
46 pages, December 13, 2016
Full text files
ng_ks_matching_process_search_or_mismatch_279.pdf
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