Do high levels of US employment reduce labour matching efficiency?

ABSTRACT

The US has witnessed an unprecedented period of employment expansion following the 2008/09 recession. This article uses a Beveridge curve approach to estimate US labour matching efficiency over the course of the last decade. It then analyses the effect of increasing employment on this efficiency. The results show that employment and labour market efficiency are co-integrated and as employment rises the efficiency of the matching process decreases.

KEYWORDS:

• Beveridge curve
• vacancy-employment
• matching efficiency

JEL CLASSIFICATION:

• E24
• E32
• J63

Disclosure statement

No potential conflict of interest was reported by the authors.