DIRECTED SEARCH WITH PHANTOM VACANCIES

B-Tier
Journal: International Economic Review
Year: 2023
Volume: 64
Issue: 2
Pages: 837-869

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

When vacancies are filled, the job ads often remain, creating phantom vacancies. Older listings more likely represent phantoms. We assume job seekers direct their search based on listing age. Forming a match with an age‐a vacancy creates an age‐a phantom with probability β and generates an externality affecting vacancies aged a and older. Thus, the externality decreases with the match's listing age. Relative to efficient behavior, job seekers overapply to younger listings. We calibrate using U.S. data. The contribution of phantoms to inefficiency is large, but, given their existence, the planner cannot improve much on the directed search allocation.

Technical Details

RePEc Handle
repec:wly:iecrev:v:64:y:2023:i:2:p:837-869
Journal Field
General
Author Count
3
Added to Database
2026-01-24