LABOR TURNOVER COSTS AND THE CYCLICAL BEHAVIOR OF VACANCIES AND UNEMPLOYMENT

By José I. Silva, Manuel Toledo. Macroeconomic Dynamics, 2009

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Uncertainty and Unemployment (2017, background): “The vacancy cost c is about 33% of the average quarterly compensation of workers, which is about twice as much as the 14% estimated in Silva and Toledo (2009).”
The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited (2008, background): “Adjusting, as in Silva and Toledo (2006), for the possibility that hiring is done by supervisors who receive higher wages than a new hire, the average labor cost of hiring one worker is 3% to 4.”
FiMod - a DSGE Model for Fiscal Policy Simulations (2012, background): “Following Silva and Toledo (2009), we target training costs to be equal to 55% of a new hire’s quarterly wage, i.e. κtc = 0.55 · w̄p.”
The Long Slump (2011, background): “The cost of filling a vacancy, γ/q, is 14 percent of a quarter’s earnings, according to Silva and Toledo (2008).”
A Theory of Countercyclical Government Multiplier (2014, unknown): “This estimate is constructed from microevidence collected by Barron, Berger, and Black ( 1997 ) and Silva and Toledo ( 2009 ) .”
Unemployment and Business Cycles (2013, background): “Silva and Toledo (2009) report that, depending on the exact costs included, the value of this statistic is between 4 and 14 percent, a range that encompasses our estimate.”