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Vacancies, employment outcomes and firm growth: Evidence from Denmark

Author

Listed:
  • Jesper Bagger

    (University of London [London], Aarhus University [Aarhus])

  • Francois Fontaine

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Manolis Galenianos

    (University of London [London])

  • Ija Trapeznikova

    (University of London [London])

Abstract
We use comprehensive data from Denmark that merge online job advertisements with a matched employer-employee dataset and a firm-level dataset with information on revenues and value added to study the relationship between vacancy-posting and various firm outcomes. Vacancy-posting is associated with a 4.4 percentage point increase in a firm's hiring rate and 85% of the additional hiring occurs within two months. The response of hiring from employment is twice as large as the response of hiring from non-employment. Firms that are smaller, low-wage and fast-growing are associated with larger hiring responses and that response materializes faster at larger firms, low-wage firms and fast-growing firms. We also find that separations are associated with subsequent vacancy-posting and this effect is stronger for separations to employment, consistent with replacement hiring and the presence of vacancy chains. Growth in revenue and value added strongly predict vacancy-posting, with negative shocks having a stronger effect than positive shocks and larger shocks having less-than-proportional responses.

Suggested Citation

  • Jesper Bagger & Francois Fontaine & Manolis Galenianos & Ija Trapeznikova, 2022. "Vacancies, employment outcomes and firm growth: Evidence from Denmark," PSE-Ecole d'économie de Paris (Postprint) halshs-03761444, HAL.
    • Handle: RePEc:hal:pseptp:halshs-03761444
    DOI: 10.1016/j.labeco.2021.102103
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    References listed on IDEAS

    as
    1. Carlos Carrillo-Tudela & Hermann Gartner & Leo Kaas, 2023. "Recruitment Policies, Job-Filling Rates, and Matching Efficiency," Journal of the European Economic Association, European Economic Association, vol. 21(6), pages 2413-2459.
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    Cited by:

    1. Moser, Christian & Saidi, Farzad & Wirth, Benjamin & Wolter, Stefanie, 2020. "Credit Supply, Firms, and Earnings Inequality," MPRA Paper 100371, University Library of Munich, Germany.
    2. Maibom, Jonas & Vejlin, Rune Majlund, 2021. "Passthrough of Firm Performance to Income and Employment Stability," IZA Discussion Papers 14131, Institute of Labor Economics (IZA).
    3. Atkins, Rachel M.B. & Hernández-Lagos, Pablo & Jara-Figueroa, Cristian & Seamans, Robert, 2023. "JUE Insight: What is the impact of opportunity zones on job postings?," Journal of Urban Economics, Elsevier, vol. 136(C).

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    More about this item

    Keywords

    Vacancies; Hiring; Separations; Employment growth; Firm growth; Value added; Revenue;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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