Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82557
Authors: 
Eriksson, Stefan
Stadin, Karolina
Year of Publication: 
2011
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2011:19
Abstract: 
This paper studies the determinants of hiring. We use the search-matching model with imperfect competition in the product market from Carlsson, Eriksson and Gottfries (2011) to derive an equation for total hiring in a local labor market, and estimate it on Swedish panel data. When product markets are imperfectly competitive, product demand shocks have a direct effect on employment. Our results show that product demand is important for hiring. Moreover, we show that conventional measures of vacancies do not fully capture the effect of product demand on hiring. Finally, we show that the number of unemployed workers has a positive effect on hiring as predicted by search-matching models.
Subjects: 
Hiring
Search-matching
Imperfect Competition
Unemployment
JEL: 
E24
J23
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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