IDEAS home Printed from https://ideas.repec.org/a/eee/joepsy/v90y2022ics0167487022000265.html
   My bibliography  Save this article

Job search in the presence of a stressor: Does financial hardship change the effectiveness of job search?

Author

Listed:
  • Gerards, Ruud
  • Welters, Riccardo

Abstract

Following a group of 2,973 Australian unemployed job seekers over time, we confirm predictions from Self-Determination Theory, Conservation of Resources Theory and Scarcity Theory that the presence of financial hardship during job search adversely affects job search quality and subsequently job search effectiveness (measured one year later). We show the importance in labor market research of controlling for a range of confounding factors including the impact of financial hardship on job search intensity. The implemented controls allow more precise inferences of the effect of financial hardship on job search quality/effectiveness, than so far achieved in this emerging body of literature.

Suggested Citation

  • Gerards, Ruud & Welters, Riccardo, 2022. "Job search in the presence of a stressor: Does financial hardship change the effectiveness of job search?," Journal of Economic Psychology, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:joepsy:v:90:y:2022:i:c:s0167487022000265
    DOI: 10.1016/j.joep.2022.102508
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167487022000265
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.joep.2022.102508?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joseph P. Romano & Michael Wolf, 2005. "Stepwise Multiple Testing as Formalized Data Snooping," Econometrica, Econometric Society, vol. 73(4), pages 1237-1282, July.
    2. Xiaodong Gong & Robert Breunig, 2014. "Channels of labour supply responses of lone parents to changed work incentives," Oxford Economic Papers, Oxford University Press, vol. 66(4), pages 916-939.
    3. David Card & Raj Chetty & Andrea Weber, 2007. "Cash-on-Hand and Competing Models of Intertemporal Behavior: New Evidence from the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1511-1560.
    4. Gaure, Simen & Røed, Knut & Westlie, Lars, 2012. "Job search incentives and job match quality," Labour Economics, Elsevier, vol. 19(3), pages 438-450.
    5. Frank Schilbach & Heather Schofield & Sendhil Mullainathan, 2016. "The Psychological Lives of the Poor," American Economic Review, American Economic Association, vol. 106(5), pages 435-440, May.
    6. Marco Caliendo & Konstantinos Tatsiramos & Arne Uhlendorff, 2013. "Benefit Duration, Unemployment Duration And Job Match Quality: A Regression‐Discontinuity Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(4), pages 604-627, June.
    7. Michael Svarer, 2011. "The Effect of Sanctions on Exit from Unemployment: Evidence from Denmark," Economica, London School of Economics and Political Science, vol. 78(312), pages 751-778, October.
    8. Grant, Adam M. & Nurmohamed, Samir & Ashford, Susan J. & Dekas, Kathryn, 2011. "The performance implications of ambivalent initiative: The interplay of autonomous and controlled motivations," Organizational Behavior and Human Decision Processes, Elsevier, vol. 116(2), pages 241-251.
    9. Christoph Basten & Andreas Fagereng & Kjetil Telle, 2014. "Cash‐on‐hand and the Duration of Job Search: Quasi‐experimental Evidence from Norway," Economic Journal, Royal Economic Society, vol. 0(576), pages 540-568, May.
    10. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    11. Viinikainen, Jutta & Kokko, Katja, 2012. "Personality traits and unemployment: Evidence from longitudinal data," Journal of Economic Psychology, Elsevier, vol. 33(6), pages 1204-1222.
    12. Xu, Yilan & Beller, Andrea H. & Roberts, Brent W. & Brown, Jeffrey R., 2015. "Personality and young adult financial distress," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 90-100.
    13. Welters, Riccardo & Mitchell, William & Muysken, Joan, 2014. "Self determination theory and employed job search," Journal of Economic Psychology, Elsevier, vol. 44(C), pages 34-44.
    14. Lorenzo Corsini, 2012. "Unemployment Insurance Schemes, Liquidity Constraints and Re-employment: A Three Country Comparison," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 321-340, June.
    15. Kyle Herkenhoff & Gordon Phillips & Ethan Cohen-Cole, 2016. "How Credit Constraints Impact Job Finding Rates, Sorting & Aggregate Output," NBER Working Papers 22274, National Bureau of Economic Research, Inc.
    16. Uysal, Selver Derya & Pohlmeier, Winfried, 2011. "Unemployment duration and personality," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 980-992.
    17. Damian Clarke & Joseph P. Romano & Michael Wolf, 2020. "The Romano–Wolf multiple-hypothesis correction in Stata," Stata Journal, StataCorp LP, vol. 20(4), pages 812-843, December.
    18. Gianni La Cava & John Simon, 2005. "Household Debt and Financial Constraints in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 38(1), pages 40-60, March.
    19. Konstantinos Tatsiramos & Jan C. Ours, 2014. "Labor Market Effects Of Unemployment Insurance Design," Journal of Economic Surveys, Wiley Blackwell, vol. 28(2), pages 284-311, April.
    20. Mark Wooden & Nicole Watson, 2007. "The HILDA Survey and its Contribution to Economic and Social Research (So Far)," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 208-231, June.
    21. Caliendo, Marco & Gielen, Anne C. & Mahlstedt, Robert, 2015. "Home-ownership, unemployed’s job search behavior and post-unemployment outcomes," Economics Letters, Elsevier, vol. 137(C), pages 218-221.
    22. Crossley, Craig D. & Highhouse, Scott, 2005. "Relation of job search and choice process with subsequent satisfaction," Journal of Economic Psychology, Elsevier, vol. 26(2), pages 255-268, April.
    23. Deborah Cobb‐Clark, 2010. "Disadvantage across the Generations: What Do We Know about Social and Economic Mobility in Australia?," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 13-17, September.
    24. Hoang, Thi Truong An & Knabe, Andreas, 2021. "Replication: Emotional well-being and unemployment – Evidence from the American time-use survey," Journal of Economic Psychology, Elsevier, vol. 83(C).
    25. Ruud Gerards & Riccardo Welters, 2020. "Liquidity Constraints, Unemployed Job Search and Labour Market Outcomes," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 625-646, June.
    26. Peter Meer, 2014. "Gender, Unemployment and Subjective Well-Being: Why Being Unemployed Is Worse for Men than for Women," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(1), pages 23-44, January.
    27. John M. Barron & Wesley Mellow, 1981. "Changes in Labor Force Status among the Unemployed," Journal of Human Resources, University of Wisconsin Press, vol. 16(3), pages 427-441.
    28. Denise J. Doiron, 2004. "Welfare Reform and the Labour Supply of Lone Parents in Australia: A Natural Experiment Approach," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 157-176, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hilbert, Leon P. & Noordewier, Marret K. & van Dijk, Wilco W., 2022. "Financial scarcity increases discounting of gains and losses: Experimental evidence from a household task," Journal of Economic Psychology, Elsevier, vol. 92(C).
    2. Block, Joern & Kritikos, Alexander S. & Priem, Maximilian & Stiel, Caroline, 2022. "Emergency-aid for self-employed in the Covid-19 pandemic: A flash in the pan?," Journal of Economic Psychology, Elsevier, vol. 93(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ruud Gerards & Riccardo Welters, 2020. "Liquidity Constraints, Unemployed Job Search and Labour Market Outcomes," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 625-646, June.
    2. Gerards, Ruud & Welters, Ricardo, 2016. "Impact of financial pressure on unemployed job search, job find success and job quality," ROA Research Memorandum 008, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    3. Juliana MESÉN VARGAS & Bruno VAN DER LINDEN, 2017. "Is there always a trade-off between insurance and incentives? The case of unemployment with subsistence constraints," LIDAM Discussion Papers IRES 2017014, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. Vargas Juliana Mesén & Linden Bruno Van der, 2019. "Why Cash Transfer Programs Can Both Stimulate and Slow Down Job Finding," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-27, June.
    5. Lachowska, Marta & Meral, Merve & Woodbury, Stephen A., 2016. "Effects of the unemployment insurance work test on long-term employment outcomes," Labour Economics, Elsevier, vol. 41(C), pages 246-265.
    6. Cockx, Bart & Declercq, Koen & Dejemeppe, Muriel & Inga, Leda & Van der Linden, Bruno, 2020. "Switching from an inclining to a zero-level unemployment benefit profile: Good for work incentives?," Labour Economics, Elsevier, vol. 64(C).
    7. Konstantinos Tatsiramos & Jan C. Ours, 2014. "Labor Market Effects Of Unemployment Insurance Design," Journal of Economic Surveys, Wiley Blackwell, vol. 28(2), pages 284-311, April.
    8. Yolanda F. Rebollo-Sanz & Nuria Rodriguez Planas, 2016. "When the Going Gets Tough... Financial Incentives, Duration of Unemployment and Job-Match Quality," Working Papers 16.11, Universidad Pablo de Olavide, Department of Economics.
    9. Marco Caliendo & Stefan Tübbicke, 2019. "Do Start-Up Subsidies for the Unemployed Affect Participants’ Well-Being? A Rigorous Look at (Un-)Intended Consequences of Labor Market Policies," CEPA Discussion Papers 14, Center for Economic Policy Analysis.
    10. Andrea Morescalchi, 2021. "A new career in a new town. Job search methods and regional mobility of unemployed workers," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(2), pages 223-272, May.
    11. Kyyrä, Tomi & Pesola, Hanna, 2017. "Estimating the effects of potential benefit duration without variation in the maximum duration of unemployment benefits," Working Papers 87, VATT Institute for Economic Research.
    12. Tomi Kyyrä & Hanna Pesola, 2020. "The Effects of UI Benefits on Unemployment and Subsequent Outcomes: Evidence from a Kinked Benefit Rule," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(5), pages 1135-1160, October.
    13. Ahn, Taehyun, 2018. "Assessing the effects of reemployment bonuses on job search: A regression discontinuity approach," Journal of Public Economics, Elsevier, vol. 165(C), pages 82-100.
    14. Le Barbanchon, Thomas, 2016. "The effect of the potential duration of unemployment benefits on unemployment exits to work and match quality in France," Labour Economics, Elsevier, vol. 42(C), pages 16-29.
    15. Fackler, Daniel & Stegmaier, Jens & Weigt, Eva, 2019. "Does extended unemployment benefit duration ameliorate the negative employment effects of job loss?," Labour Economics, Elsevier, vol. 59(C), pages 123-138.
    16. Kyyrä, Tomi & Pesola, Hanna, 2020. "The effects of unemployment benefit duration: Evidence from residual benefit duration," Labour Economics, Elsevier, vol. 65(C).
    17. Martín-Román, Ángel L., 2022. "Beyond the added-worker and the discouraged-worker effects: the entitled-worker effect," Economic Modelling, Elsevier, vol. 110(C).
    18. Elif S. Filiz, 2017. "The Effect of Unemployment Insurance Generosity on Unemployment Duration and Labor Market Transitions," LABOUR, CEIS, vol. 31(4), pages 369-393, December.
    19. Lars Pico Geerdsen & Stéphanie Vincent Lyk-Jensen & Cecilie Dohlmann Weatherall, 2018. "Accelerating the transition to employment at benefit exhaustion: still possible after four years of unemployment?," Empirical Economics, Springer, vol. 54(3), pages 1107-1135, May.
    20. Hermes, Henning & Mierisch, Fabian & Peter, Frauke & Wiederhold, Simon & Lergetporer, Philipp, 2023. "Discrimination on the Child Care Market: A Nationwide Field Experiment," IZA Discussion Papers 16082, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Unemployment; Job search effectiveness; Financial hardship; Confounding relationships; Job search quality;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joepsy:v:90:y:2022:i:c:s0167487022000265. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/joep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.