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RESEARCH PRODUCT

Heterogeneity of job seekers in labour market matching

subject

description

This study examines the matching of heterogeneous job seekers and vacant jobs. Job seekers are divided into four employability groups according to their labour market status. The dataset consists of highly disaggregated monthly data from 146 Local Labour Offices in Finland over 14 years. The results indicate that the employability of job seekers differs. Therefore, the composition of the pool of job seekers in a local labour market affects the ability of that market to form successful matches. The long-term unemployed have a negative effect on matches while job seekers out of the labour force notably improve the production of matches.