We estimate the elasticity of vacancy duration with respect to posted wages, using data from the near-universe of online job adverts in the United Kingdom. Our research design identifies duration elasticities by leveraging firm-level wage policies that are plausibly exogenous to hiring difficulties on specific job vacancies, and control for job and market-level fixed-effects. Wage policies are defined based on external information on pay settlements, or on sharp, internally-defined, firm-level changes. In our preferred specifications, we estimate duration elasticities in the range -3 to -5, which are substantially larger than the few existing estimates.

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5 March 2025

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Review of Economics and Statistics , pp.1-28, 2025

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DOI: 10.1162/rest_a_01580

https://direct.mit.edu/rest/article/doi/10.1162/rest_a_01580/128258/Vacancy-Duration-and-Wages

This Journal article is published under the centre's Labour programme.