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Wage and unemployment: Evidence from online job vacancy data

Author

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  • Faryna, Oleksandr
  • Pham, Tho
  • Talavera, Oleksandr
  • Tsapin, Andriy

Abstract

This paper examines the relationship between labour market conditions and wage dynamics by exploiting a unique dataset of more than one million online job vacancies. We find a weak trade-off between aggregate wage inflation and unemployment. This link becomes more evident when the wage inflation is disaggregated at the sectoral and occupational level. The examination, using vacancy-level data, shows a negative correlation between offered wage and unemployment. The degree of wage elasticity, however, is different across regions and skill segments. Our findings suggest the importance of micro-level data's unique dimensions in examining the wage – unemployment relationship.

Suggested Citation

  • Faryna, Oleksandr & Pham, Tho & Talavera, Oleksandr & Tsapin, Andriy, 2022. "Wage and unemployment: Evidence from online job vacancy data," Journal of Comparative Economics, Elsevier, vol. 50(1), pages 52-70.
    • Handle: RePEc:eee:jcecon:v:50:y:2022:i:1:p:52-70
    DOI: 10.1016/j.jce.2021.05.003
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    Cited by:

    1. Pham, Tho & Talavera, Oleksandr & Wu, Zhuangchen, 2023. "Labor markets during war time: Evidence from online job advertisements," Journal of Comparative Economics, Elsevier, vol. 51(4), pages 1316-1333.
    2. David Blanchflower & Alex Bryson & Jackson Spurling, 2024. "The wage curve after the Great Recession," Economica, London School of Economics and Political Science, vol. 91(362), pages 653-668, April.
    3. Choi, Sekyu & Figueroa, Nincen & Villena-Roldán, Benjamin, 2020. "Wage Cyclicality Revisited: The Role of Hiring Standards," MPRA Paper 98240, University Library of Munich, Germany.
    4. Tho Pham & Oleksandr Talavera & Zhuangchen Wu, 2023. "Labor Markets during War Time: Evidence from Online Job Ads," Discussion Papers 23-03, Department of Economics, University of Birmingham.

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    More about this item

    Keywords

    Phillips curve; wage curve; heterogeneity; micro data; online vacancies;
    All these keywords.

    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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