Hiring Costs for Skilled Workers

The firm’s costs to hire skilled workers can be substantial. Even though labor adjustment costs play an important role in macro and microeconomic theory, there is, so far, hardly any direct empirical evidence on hiring costs. The aim of this project is, on the one hand, to investigate the size and the determinants of hiring costs. On the other hand, the goal is to analyze the impact of these costs on the firm’s recruitment and training strategies.