TOWARD A THEORY OF VACANCIES

We attempt to further characterize the search strategies of the employ er. In the article, we discuss how characteristics of the employer or conditions that the employer faces affect the optimal search strategie s and the probability of filling a vacancy in each period. Semiparamet ric and parametric methods are used to estimate hazard rates of fillin g vacancies. The results suggest that for the given sample of vacancie s, the general form of the hazard function is nonmonotonic. Additional ly, the results suggest that those employers who have advance notice o f the vacancy may search longer than those employers who do not.