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The Job Search Intensity Supply Curve: How Labor Market Conditions Affect Job Search Effort

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  • Jeremy Schwartz

    (Loyola University Maryland)

Abstract

Whether individuals search more for work during expansions remains an open question in the literature. Many macro-labor models assume workers search more during expansions when jobs are more plentiful; however, workers may also anticipate future income from employment and consume more of their savings while unemployed. If leisure and consumption are complements, workers may end up searching less during expansion and devote more time toward leisure. This paper develops a search model that allows for these countervailing effects and structurally estimates the parameters. I find that search intensity is only weakly pro- to almost a-cyclical.

Suggested Citation

  • Jeremy Schwartz, 2019. "The Job Search Intensity Supply Curve: How Labor Market Conditions Affect Job Search Effort," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(2), pages 269-300, April.
    • Handle: RePEc:pal:easeco:v:45:y:2019:i:2:d:10.1057_s41302-019-00136-5
    DOI: 10.1057/s41302-019-00136-5
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    Cited by:

    1. Jan Eeckhout & Ilse Lindenlaub, 2019. "Unemployment Cycles," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(4), pages 175-234, October.
    2. Ahn Hie Joo & Shao Ling, 2021. "The Cyclicality of On-the-Job Search Effort," The B.E. Journal of Macroeconomics, De Gruyter, vol. 21(1), pages 185-220, January.
    3. Hie Joo Ahn & Ling Shao, 2017. "Precautionary On-the-Job Search over the Business Cycle," Finance and Economics Discussion Series 2017-025, Board of Governors of the Federal Reserve System (U.S.).

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    More about this item

    Keywords

    Job search; Search models; Structural estimation; Search methods;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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