Empirical matching functions: Estimation and interpretation using state-level data

Citation
Pm. Anderson et Sm. Burgess, Empirical matching functions: Estimation and interpretation using state-level data, REV ECON ST, 82(1), 2000, pp. 93-102
Citations number
40
Categorie Soggetti
Economics
Journal title
REVIEW OF ECONOMICS AND STATISTICS
ISSN journal
00346535 → ACNP
Volume
82
Issue
1
Year of publication
2000
Pages
93 - 102
Database
ISI
SICI code
0034-6535(200002)82:1<93:EMFEAI>2.0.ZU;2-E
Abstract
Using quarterly data to estimate state-level matching functions, we obtain point estimates that are slightly higher than are found with national gross flows data, likely because of inherent differences in the data sources. We also estimate matching functions separately by the source of the new hire, and show that the results are consistent with the assumptions of endogenou s job search by the employed and a preference for employed applicants by fi rms. Thus, care must be taken in interpreting empirical matching functions, which are likely a reduced-form combination of a structural matching funct ion and a job competition model.