Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328198 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 18068
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper examines the relationship between output fluctuations and firms' recruitment efforts using Danish data that link online job ads with high-frequency firm-level revenue and value-added. While overall output growth is weakly correlated with advertisement rates, decomposing output into permanent and transitory components reveals a strong link between persistent shocks and recruitment effort. A one standard deviation permanent shock raises advertisement rates by 10-16% of a standard deviation, whereas transitory shocks show no significant effect. These results highlight the importance of shock persistence in labor demand and offer empirical support for dynamic search-and-matching models of the labor market.
Subjects: 
vacancies
online job advertisements
output growth
revenue growth
value-added growth
permanent and transitory shocks
JEL: 
J23
J63
Document Type: 
Working Paper

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