TY  - RPRT
        AU  - Hirsch, Boris
AU  - Jahn, Elke J.
AU  - Manning, Alan
AU  - Oberfichtner, Michael
        TI  - The Wage Elasticity of Recruitment
        PY  - 2022/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15675
        UR  - https://www.iza.org/index.php/publications/dp15675
        AB  - One of the factors likely to affect the market power of employers is the sensitivity of the flow of recruits to the offered wage, but there is very little research on this. This paper presents a methodology for estimating the wage elasticity of recruitment and applies it to German data. Our estimates of the wage elasticity of recruitment are about 1.4. We also report evidence that high-wage employers are more selective in hiring, in which case the relevant recruitment elasticity should be higher, about 2.2. Together with prior estimates of the quit elasticity these results imply that wages are 72–77% of the marginal product of labour. Further, we find lower elasticities for recruits hired from non-employment as well as for women, non-German nationals, non-prime-age workers, less skilled workers, and workers with less complex jobs.
        KW  - monopsony
KW  - imperfect labour markets
KW  - wage elasticity of recruitment
        ER  -