Worker firm matching in the labour market: evidence from online search and realized outcomes

Project title

Worker firm matching in the labour market: evidence from online search and realized outcomes

Project summary

The purpose of the project is to bring new insights regarding the relationship between firms’ hiring needs, their posted vacancies, job-search behavior, and realized labor market outcomes. At every point in time, a large number of job seekers and unfilled job vacancies coexist in the labor market. One explanation is frictions arising because both sides of the market need to search for their relevant matches. But even if the search and matching model à la Diamond, Mortensen and Pissarides is now the workhorse to study the equilibrium on the labor market, there is still very little direct empirical evidence about the nature and implications of search frictions. The scarce evidence is mainly due to the fact that most available datasets lack information about the search strategies of both job seekers and recruiters. The groundbreaking nature of this project is that I will use data on job search behavior and posted vacancy adds from Sweden's largest online job search platform combined with administrative data on actual labor market outcomes. These data allow for in-depth investigations of the behavior- and outcomes- of the job search process. The output of the project will contribute to theoretical developments and guide policy-makers who design the labor our market institutions. A better understanding of the job search process will hopefully lead to reduced frictional unemployment and to increased productivity of workers through a reduction of mismatch in the labor market.

Project duration

2021-2026
 

Main applicant

Lena Hensvik
 

Funder

Swedish Research Council (Consolidator grant)
 

Amount received

SEK 12,000,000

Last modified: 2021-03-09