The Matching Process: Search or Mismatch?

52 Pages Posted: 16 Feb 2017

See all articles by Nils Gottfries

Nils Gottfries

Uppsala University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Karolina Stadin

Ratio Institute

Date Written: January 24, 2017

Abstract

We examine the matching process using monthly panel data for local labour markets in Sweden. We find that an increase in the number of vacancies has a weak effect on the number of unemployed workers being hired: unemployed workers appear to be unable to compete for many available jobs. Vacancies are filled quickly and there is no (or only weak) evidence that high unemployment makes it easier to fill vacancies; hiring appears to be determined by labour demand while frictions and labour supply play small roles. These results indicate persistent mismatch in the labour market.

Keywords: Structural Unemployment, Frictional Unemployment, Matching Function, Labour Demand, Labour Supply

JEL Classification: J230, J620, J630, J640

Suggested Citation

Gottfries, Nils and Stadin, Karolina, The Matching Process: Search or Mismatch? (January 24, 2017). CESifo Working Paper Series No. 6300, Available at SSRN: https://ssrn.com/abstract=2918715 or http://dx.doi.org/10.2139/ssrn.2918715

Nils Gottfries (Contact Author)

Uppsala University - Department of Economics ( email )

Box 513
SE-75120 Uppsala
Sweden
+46 18 471 2304 (Phone)
+46 18 471 1478 (Fax)

HOME PAGE: http://www.nek.uu.se/faculty/gottfries/index.html

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Karolina Stadin

Ratio Institute ( email )

P.O. Box 3203
SE-103 64 Stockholm
Sweden

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