Template-Type: ReDIF-Paper 1.0 
Title: Randomness or stock-flow: Which mechanism describes labour market matching in Poland?
Author-Name: Ewa Gałęcka-Burdziak 
Abstract: I compare random, stock-flow and job queuing models to determine which mechanism prevails in thePolish labour market. I use monthly registered unemployment data for the period 1999 - 2013 andeconometrically correct for temporal aggregation bias in the data. I extend the known solutions to make themdirectly applicable to a job queuing model. I find that stocks and inflows engage in a matching process. Job seekers (from the pool) seek workamong old and new job posts, but only a small fraction of the newly unemployed individuals find workinstantaneously. Vacancies are the driving force in aggregate hiring, but the inflow is more important than thestock. The random model has greater explanatory power, although the results do not negate the non-randommodel. The random model entails the need to improve information to facilitate matching. The stock-flow modelimplies that policy should aim at creating more job offers.
Number: 2016-005
Length: 33 pages 
Creation-Date: 2016-04
Keywords: Stock-flow matching, Random matching, Job queuing, Polish labour market, Temporal aggregation
Classification-JEL: J63, J64
File-URL: https://hdl.handle.net/20.500.12182/1083
File-Format: Application/pdf
DOI: 10.33119/kaewps2016005
Handle: RePEc:sgh:kaewps:2016005