Creator: Gavazza, Alessandro, Mongey, Simon J., and Violante, Giovanni L. Series: Staff report (Federal Reserve Bank of Minneapolis. Research Department) Number: 553 Abstract:
We develop an equilibrium model of firm dynamics with random search in the labor market where hiring firms exert recruiting effort by spending resources to fill vacancies faster. Consistent with microevidence, fast-growing firms invest more in recruiting activities and achieve higher job-filling rates. These hiring decisions of firms aggregate into an index of economy-wide recruiting intensity. We study how aggregate shocks transmit to recruiting intensity, and whether this channel can account for the dynamics of aggregate matching efficiency during the Great Recession. Productivity and financial shocks lead to sizable pro-cyclical fluctuations in matching efficiency through recruiting effort. Quantitatively, the main mechanism is that firms attain their employment targets by adjusting their recruiting effort in response to movements in labor market slackness.
关键词: Aggregate matching efficiency, Unemployment, Vacancies, Firm dynamics, Recruiting intensity, and Macroeconomic shocks 学科: E44 - Financial Markets and the Macroeconomy, J63 - Labor Turnover; Vacancies; Layoffs, D25 - Intertemporal Firm Choice: Investment, Capacity, and Financing, J64 - Unemployment: Models, Duration, Incidence, and Job Search, J23 - Labor Demand, E32 - Business Fluctuations; Cycles, G01 - Financial Crises, and E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity