Arbeitspapier

Job applications and labour market flows

Job applications have risen over time, yet job-finding rates have remained unchanged. Meanwhile, job separations have declined. We argue that an increase in the number of applications raises the probability of finding a good match rather than the probability of finding a job. Using a search model with multiple applications and costly information, we show that when applications increase, firms invest in identifying good matches, thereby reducing separations. Concurrently, increased congestion and selectivity over which offer to accept temper increases in job-finding rates. Our framework contains testable implications for changes in offers, acceptances, reservation wages, applicants per vacancy, and tenure, factors that enable us to generate the trends in unemployment flows.

Language
Englisch

Bibliographic citation
Series: Bank of Canada Staff Working Paper ; No. 2021-49

Classification
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Labor Turnover; Vacancies; Layoffs
Unemployment: Models, Duration, Incidence, and Job Search
Subject
Labour markets
Productivity

Event
Geistige Schöpfung
(who)
Birinci, Serdar
See, Kurt
Wee, Shu Lin
Event
Veröffentlichung
(who)
Bank of Canada
(where)
Ottawa
(when)
2021

DOI
doi:10.34989/swp-2021-49
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Birinci, Serdar
  • See, Kurt
  • Wee, Shu Lin
  • Bank of Canada

Time of origin

  • 2021

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