Measuring the Effect of Matching Problems on Unemployment

• This paper shows how matching problems reduce employment – and hence also raise unemployment – by creating a gap between labour demand and employment. It also shows how this gap can be measured by unfilled jobs (unmet demand) as distinct from job vacancies (recruitment processes) and reports results from a vacancy survey which measures both. In fact, while a shift of the matching function indicating longer recruitment times suggests increasing matching problems, it is only the measurement of unfilled jobs which can verify this and at the same time quantify the effect on unemployment.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

Vacancies

unemployment

Beveridge curve

matching function

Publication and Content Type

ref (subject category)

art (subject category)