Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89838
Authors: 
Mühlemann, Samuel
Pfeifer, Harald
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7656
Abstract: 
This paper analyzes the structure of hiring costs of skilled workers in Germany. Using detailed and representative firm-level data on recruitment and adaptation costs of new hires, we find that average hiring costs amount to more than 8 weeks of wage payments (4,700 Euros). The structure of hiring costs is convex, as an increase in the number of hires by 1% increases hiring costs by 1.3%. We find moderate effects of labor market institutions on the magnitude but none on the structure of hiring costs. Furthermore, we provide evidence in favor of monopsony power in the German labor market.
Subjects: 
labor adjustment costs
hiring costs
search costs
adaptation costs
JEL: 
J32
J63
Document Type: 
Working Paper

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