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Title page

Contents

Abstract 3

1. Introduction 4

2. General Context, Data, and Descriptive Statistics 10

2.1. General context 10

2.2. Data 10

2.3. Descriptive statistics 12

3. Cross-Sectional Facts on Job Applications 14

3.1. How diverse are application portfolios? 14

3.2. Cross-sectional patterns of directed search 18

3.3. The role of non-wage amenities 23

3.4. Summary of findings and discussion 28

4. The Causal Effect of Wages on Applications 29

4.1. Setting and data 29

4.2. Empirical strategy 32

4.3. Application effects of the minimum wage 34

4.4. Additional results 37

5. Conclusions 37

Bibliography 39

Online Appendix 69

A. Methodology for Creating Variables from Free Text Entries 70

A.1. Skills 70

A.2. Occupations 72

A.3. Amenities 73

B. Additional Figures and Tables 78

Appendix Bibliography 105

Tables

Table 1. Descriptive Statistics for Vacancies, Applicants, and Applications on the BJ platform 55

Table 2. Descriptive Statistics for Amenities 56

Table 3. Cross-Sectional Patterns of Directed Search 57

Table 4. Cross-Sectional Patterns of Directed Search: Heterogeneity by Applicants Characteristics 58

Table 5. Correlation Between Advertised Amenities and Posted Wages 59

Table 6. Correlation Between Advertised Amenities and Posted Wages: By Occupation Group 60

Table 7. Correlation Between Advertised Amenities and Applications 61

Table 8. Correlation Between Advertised Amenities and Applications: Heterogeneities 62

Table 9. Applications and At Least One Amenity: Heterogeneity by Applicants Characteristics 64

Table 10. Applications and Individual Amenities: Heterogeneity by Applicants Characteristics 65

Table 11. Estimation Sample: Descriptive Statistics 66

Table 12. Difference-in-Differences Results: Applications per Opening, Vacancies, and Openings 67

Table 13. Differences-in-Difference Results on Applications: Heterogeneity by Applicants Characteristics 68

Figures

Figure 1. Distribution of BJ Vacancies: Industries and Occupations 46

Figure 2. Distribution of Number of Applications at the Applicant-by-Spell Level 47

Figure 3. Portfolio Diversification: Different Groups 48

Figure 4. Share of Applications to Vacancies in Same Occupation of Current Job 49

Figure 5. Cross-Sectional Relationship Between Applications and Posted Wages (All Vacancies) 50

Figure 6. Cross-Sectional Relationship Between Applications and Posted Wages (By Broadly Defined Occupations) 51

Figure 7. Collective Bargaining Agreements (CBAs): Number of Groups and Subgroups, Minimum Wages within CBAs, and Timing of Minimum Wage Adjustments 52

Figure 8. Event Studies: Median Number of Applications per Opening 53

Figure 9. Event Studies: Total Vacancies and Total Openings 54

Appendix Tables

Table A.1. Categorization of skills, definitions, and sources 71

Table A.2. Categorization of amenities, definitions, and sources 74

Table A.3. Descriptive statistics of word matches and share of vacancies with matched amenity group 76

Table B.1. Descriptive Statistics for Amenities: All Amenities 86

Table B.2. Cross-Sectional Patterns of Directed Search: Poisson Regression 87

Table B.3. Cross-Sectional Patterns of Directed Search: Different Posted Wage Definition 88

Table B.4. Cross-Sectional Patterns of Directed Search: Occupational Heterogeneity 89

Table B.5. Requirements by Occupational Group 90

Table B.6. Cross-Sectional Patterns of Directed Search: Heterogeneity by Requirements 91

Table B.7. Cross-Sectional Patterns of Directed Search: Heterogeneity by Applicants Characteristics, Poisson Model 93

Table B.8. Applicant-Level Predictors of Posted Wage 94

Table B.9. Correlation Between Advertised Amenities and Posted Wages: By Occupation Group 95

Table B.10. Correlation Between Advertised Amenities and Applications: By Occupation Group 96

Table B.11. Correlation Between Advertised Amenities and Applications: By Wage Posting Status 97

Table B.12. Correlation Between Advertised Amenities and Applications: By Occupation Group and Wage Posting Status 98

Table B.13. Applicant-Level Predictors of Advertised Amenities 99

Table B.14. Average Hourly Wages and Minimum Wages, by Occupation in 2011 and 2020 100

Table B.15. Estimation Sample: Descriptive Statistics (Within-Vacancy Design) 101

Table B.16. Within-Vacancy Design 102

Table B.17. Difference-in-Differences Results: Non-Wage Amenities 103

Table B.18. Difference-in-Differences Results: Vacancy Requirements 104

Appendix Figures

Figure A.1. Word clouds for words matched in each amenity subcategory 77

Figure B.1. Evolution of Applicants and Posted Vacancies in BJ 78

Figure B.2. Distribution of Number of Applications at the Applicant-by-Spell Level Excluding IDs Observed Only One Quarter 79

Figure B.3. Portfolio Diversification: Different Groups, Considering up to 50 Applications 80

Figure B.4. Portfolio Diversification: Excluding IDs Observed Only One Quarter 81

Figure B.5. Portfolio Diversification: Heterogeneity 82

Figure B.6. Event Studies: Advertised Non-Wage Amenities 83

Figure B.7. Event Studies: Education and Skill Requirements 84

Figure B.8. Distribution of Applications by Distance to Opening Date 85

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