Inferring employer search behaviour from wage subsidy participation

Welters, Riccardo, and Muysken, Joan (2008) Inferring employer search behaviour from wage subsidy participation. Labour Economics, 15 (5). pp. 844-858.

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We introduce a novel way to infer employer search behaviour, through deadweight loss incidence in wage subsidy schemes. Using a data set on British firms participating in such schemes we can distinguish between intensive and extensive employer search. These data also allow us to separate the negative economies of scale effect from the positive monitoring effect of firm size on intensive search costs. Our findings further indicate that ‘hours worked’ and ‘supervisory tasks’ increase extensive search costs. Since intensive and extensive search behaviour affect the job find probability of the (long-term) unemployed, our conclusions have significant labour market policy relevance.

Item ID: 8327
Item Type: Article (Research - C1)
ISSN: 0927-5371
Keywords: long-term unemployment; labour demand; recruitment
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Date Deposited: 02 Mar 2010 01:01
FoR Codes: 14 ECONOMICS > 1402 Applied Economics > 140211 Labour Economics @ 100%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910107 Macro Labour Market Issues @ 100%
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