DIRECTED SEARCH WITH PHANTOM VACANCIES

When vacancies are filled, the job ads often remain, creating phantom vacancies. Older listings more likely represent phantoms. We assume seekers direct their search based on listing age. Forming a match with an age-a vacancy creates probability β and generates externality affecting aged older. Thus, decreases match's Relative to efficient behavior, overapply younger listings. calibrate using U.S. data. The contribution of phantoms inefficiency is large, but, given existence, planner cannot improve much directed allocation.