Vacancy duration and wages

Title: Vacancy duration and wages (with Ihsaan Bassier and Alan Manning)

Abstract: We estimate the elasticity of vacancy duration with respect to posted wages, using data from the near-universe of online job adverts in the United Kingdom. Our research design leverages firm-level wage policies that are plausibly exogenous to hiring difficulties on specific job vacancies, and controls for job and market-level fixed-effects. Wage policies are defined based on external information on pay settlements, or on sharp, internally-defined, firm-level changes. In our preferred specifications, we estimate du-ration elasticities in the range −3 to −5, which are substantially larger than the few existing estimates