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Higher wages or lower expectations? : adjustments of German firms in the hiring process

Author

Listed:
  • Brenzel, Hanna

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Müller, Anne

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"Labour shortages are a field of research that has been investigated quite thoroughly. The reactions of firms facing problems during the hiring process are, however, largely neglected in empirical literature. Our research will fill this empirical gap and shed light on the question of whether reactions according to the neoclassical theory or to the Reder Hypothesis are more common in reality. We make use of a unique dataset, the German Job Vacancy Survey, which allows us to observe the entire operational recruitment process including potential problems, concessions made by firms as well as characteristics of the hired candidate, the vacancy and the firm itself. Whether concessions are made mainly depends on the labour market situation and on the specific hiring problems of a firm. We also find that firms are rather flexible in their reactions in accordance with the specific hiring problem. Therefore, both theories seem to apply in reality." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Brenzel, Hanna & Müller, Anne, 2015. "Higher wages or lower expectations? : adjustments of German firms in the hiring process," IAB-Discussion Paper 201506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201506
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    References listed on IDEAS

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    10. M. J. Andrews & S. Bradley & D. Stott & R. Upward, 2008. "Successful Employer Search? An Empirical Analysis of Vacancy Duration Using Micro Data," Economica, London School of Economics and Political Science, vol. 75(299), pages 455-480, August.
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    Cited by:

    1. Möller, Joachim, 2015. "Verheißung oder Bedrohung? : die Arbeitsmarktwirkungen einer vierten industriellen Revolution," IAB-Discussion Paper 201518, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Stellenbesetzung ; Konzessionsbereitschaft ; Lohnhöhe ; ökonomische Theorie ; Personalbeschaffung ; Qualifikationsanforderungen ; IAB-Stellenerhebung;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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