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Title: Macro Recruiting Intensity from Micro Data

Author(s): Simon Mongey and Giovanni L. Violante

Publication Date: September 2019

Keyword(s): Aggregate Matching Efficiency, Firm Heterogeneity, Recruiting Intensity, unemployment and Vacancies

Programme Area(s): Labour Economics and Monetary Economics and Fluctuations

Abstract: We merge QCEW and JOLTS microdata to study the recruiting intensity of firms in the cross section and over time. Vast establishment-level heterogeneity in vacancy filling rates is entirely explained by differences in gross hiring rates. Through the lens of standard theory, we aggregate firm-level decisions into an measure of aggregate recruiting intensity (ARI). Procyclicality of ARI is primarily due to cutting recruiting effort in slack labor markets. Given this we provide an ARI index easily computable from publicly available macroeconomic data. Declining ARI in the Great Recession accounted for much of the increase in unemployment, but little of its persistence.

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Bibliographic Reference

Mongey, S and Violante, G. 2019. 'Macro Recruiting Intensity from Micro Data'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14004