Discussion paper

DP18365 Vacancy duration and wages

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 identifies duration elasticities by leveraging firm-level wage policies that are plausibly exogenous to hiring difficulties on specific job vacancies, and control 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 duration elasticities in the range -3 to -5, which are substantially larger than the few existing estimates.


Bassier, I, A Manning and B Petrongolo (2023), ‘DP18365 Vacancy duration and wages‘, CEPR Discussion Paper No. 18365. CEPR Press, Paris & London. https://cepr.org/publications/dp18365