Abstract
Labor markets become more efficient in theory if job seekers direct their search. Using online job board data, we show that high-wage ads attract more applicants as in directed search models. Due to distinctive data features, we also estimate significant but milder directed search for hidden (or implicit) wages, suggesting that ad texts and requirements tacitly convey wage information. Since explicit-wage ads often target unskilled workers, other estimates in the literature ignoring hidden-wage ads may suffer from selection bias. Moreover, job ad requirements are aligned with their applicants’ traits, as predicted in directed search models with heterogeneity.
Original language | English |
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Pages (from-to) | 715-746 |
Number of pages | 32 |
Journal | Journal of Labor Economics |
Volume | 37 |
Issue number | 3 |
DOIs | |
Publication status | Published - 1 Jul 2019 |
Externally published | Yes |
ASJC Scopus subject areas
- Industrial relations
- Economics and Econometrics