Labor market matching with heterogeneous job seekers in China

Our study provides empirical evidence for matching functions with three heterogeneous groups of job seekers in China, and bridges the gap of matching function estimation of the Chinese labor market. We find that the effects of non-unemployed job seekers in the empirical matching process for China are rather significant, and an absence of their consideration could lead to biased estimates. Moreover, the result highlights competition among the three groups of job seekers in the matching process, and indicates the potential influences of productivity, job-search services, and economic reform shocks on their matching efficiencies.