Ten Facts You Need to Know About Hiring

38 Pages Posted: 12 Oct 2015

Abstract

We provide new empirical evidence regarding the magnitude and the determinants of a firm's costs required to fill a vacancy. The average costs required to fill a vacancy for a skilled worker in Switzerland amount to about 16 weeks of wage payments. The main components of the vacancy costs are initially low productivity, the formal instruction of a new hire (53 percent), disruption costs due to informal instruction of new hires (26 percent), and search costs (21 percent). Furthermore, hiring costs for small firms are associated with labor market tightness (i.e., the vacancy-unemployment ratio).

Keywords: adaptation cost, disruption cost, hiring cost, search cost, vacancy-unemployment ratio

JEL Classification: J32, J63, M53

Suggested Citation

Mühlemann, Samuel and Strupler, Mirjam, Ten Facts You Need to Know About Hiring. IZA Discussion Paper No. 9363, Available at SSRN: https://ssrn.com/abstract=2672149 or http://dx.doi.org/10.2139/ssrn.2672149

Samuel Mühlemann (Contact Author)

University of Bern ( email )

Gesellschaftstrasse 49
Bern, CH-3012
Switzerland

Mirjam Strupler

University of Bern ( email )

Gesellschaftsstrasse 49
Bern, BERN 3001
Switzerland

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