| Summary: | We estimate the elasticity of vacancy duration with respect to posted wages, using
data from the near-universe of online job adverts in the United Kingdom. Our research
design leverages firm-level wage policies that are plausibly exogenous to hiring difficulties on specific job vacancies, and controls for job and market-level fixed-effects. Wage
policies are defined based on external information on pay settlements, or on sharp,
internally-defined, firm-level changes. In our preferred specifications, we estimate duration elasticities in the range −3 to −5, which are substantially larger than the few
existing estimates.
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