A note on the relation between search costs and search duration for new hires

Carbonero F, Gartner H (2020)


Publication Type: Journal article

Publication year: 2020

Journal

Pages Range: 1-14

DOI: 10.1017/S136510052000005X

Abstract

Fixed search costs, that is, costs that do not vary with search duration, can amplify the cyclical volatility of the labor market. To assess the size of fixed costs, we analyze the relation between search costs and search duration using German establishment data. An instrumental variable estimation shows no relation between search duration and search costs. We conclude that search costs are mainly fixed costs. Furthermore, we show that a search and matching model, calibrated for Germany with fixed costs close to 75%, can generate labor market volatility that is consistent with the data.

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APA:

Carbonero, F., & Gartner, H. (2020). A note on the relation between search costs and search duration for new hires. Macroeconomic Dynamics, 1-14. https://dx.doi.org/10.1017/S136510052000005X

MLA:

Carbonero, Francesco, and Hermann Gartner. "A note on the relation between search costs and search duration for new hires." Macroeconomic Dynamics (2020): 1-14.

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