A Duration Analysis of the Matching Process in Spanish Public Employment Agencies

This work boasts a double objective: not only does it attempt to offer a complete panorama of the matching process in Andalusian public employment agencies (Servicio Andaluz de Empleo, SAE) for both sides of the job market, based on duration analysis, but also to assess the degree to which the matching process of the job vacancies managed by the SAE approaches a stock-flow theoretical model. Labour matching. Duration Analysis. Data on vacancies and job demands. The proposed test for the vacancies requires the estimation of a competing risks duration model. An innovation of our test is that it consists of a ratio of hazard rates. Apart from the detailed duration analysis of vacancies and job demands, the main result obtained is the existence of evidence in favour of the stock-flow friction in the Spanish labour market. Our economic policy recommendation principally points to active labour market policies.