Bossler, Mario; Popp, Martin - 2023
We develop a labor demand model that encompasses pre-match hiring cost arising from tight labor markets. Through the … lens of the model, we study the effect of labor market tightness on firms' labor demand by applying novel Bartik …, we find that the individual-firm wage elasticity of labor demand reduces from -0.7 to -0.5 at the aggregate level. For …