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Do employers adjust their requirements in response to regional labor market conditions?: Evidence from Swedish vacancy postings
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2018 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The aim of this study is to investigate whether Swedish employers change their requirements for experience depending on the situation of the labor market. Using vacancy postings data from Platsbanken, and a labor shortage index by occupations, produced by the Swedish Public Employment Service, I assess whether the probability of posting an experience requirement changes in a tight or a slack labor market, in the timeperiod 2007-2017. To do this, a linear probability model with fixed effects is used. Utilizing the regional and occupational variation in the shortage index and the unique firm identifiers, allows the study to estimate both effects within an occupation and within a firm-occupation unit. The study shows a significant negative effect on the probability of an employer posting an experience requirement when a market in balance moves to a significant shortage of workers. This effect is robust across several specifications and robustness checks, including a nonlinear test of the functional form. There is no conclusive evidence for a slack labor market when workers are plentiful. However, the study shows some indications of heterogeneous effects across broad skill level groups, which points to that employers in low-skilled occupations are more responsive to changes in the labor supply than employers in high-skilled occupations.

Place, publisher, year, edition, pages
2018.
Keywords [en]
Labor economics; vacancy postings; skill requirements; Platsbanken; employer behavior
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-355277OAI: oai:DiVA.org:uu-355277DiVA, id: diva2:1228267
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Examiners
Available from: 2018-06-29 Created: 2018-06-27 Last updated: 2018-07-02Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
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More styles
Language
  • de-DE
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  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
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Output format
  • html
  • text
  • asciidoc
  • rtf