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The Determinants of Hiring in Local Labor Markets: The Role of Demand and Supply Factors
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2011 (English)Report (Other academic)
Abstract [en]

This paper studies the determinants of hiring. We use the search-matching model with imperfect competition in the product market from Carlsson, Eriksson and Gottfries (2011) to derive an equation for total hiring in a local labor market, and estimate it on Swedish panel data. When product markets are imperfectly competitive, product demand shocks have a direct effect on employment. Our results show that product demand is important for hiring. Moreover, we show that conventional measures of vacancies do not fully capture the effect of product demand on hiring. Finally, we show that the number of unemployed workers has a positive effect on hiring as predicted by search-matching models.

Place, publisher, year, edition, pages
Uppsala: Department of Economics, Uppsala University , 2011. , 33 p.
Series
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2011:19
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:uu:diva-164691OAI: oai:DiVA.org:uu-164691DiVA: diva2:469107
Available from: 2012-01-04 Created: 2011-12-22 Last updated: 2012-01-04Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf