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Short Term Gain, Long Term Pain

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  • Colin Green

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Abstract

This paper examines the role of informal job search methods on the labour market outcomes of displaced workers. Informal job search methods could alleviate short-term labour market difficulties of displaced workers by providing information on job opportunities, allowing them to signal their productivity and may mitigate wage losses through better post-displacement job matching. However if displacement results from reductions in demand for specific sectors/skills, the use of informal job search methods may increase the risk of job instability. While informal job search methods are associated with lower wage losses, they lead to increased job instability and increased risk of subsequent job displacement. Copyright Springer Science+Business Media, LLC 2012

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File URL: http://hdl.handle.net/10.1007/s12122-012-9136-y
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Bibliographic Info

Article provided by Springer in its journal Journal of Labor Research.

Volume (Year): 33 (2012)
Issue (Month): 3 (September)
Pages: 337-352

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Handle: RePEc:spr:jlabre:v:33:y:2012:i:3:p:337-352

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Web page: http://www.springer.com/economics/journal/12122

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Related research

Keywords: Job displacement; Search methods; Job security; J29; J45; M54;

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References

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  17. Osberg, L., 1989. "Fishing In Different Pools: Job Search Strategies And Job-Finding Success In Canada In The Early 1980s," Department of Economics at Dalhousie University working papers archive 89-03, Dalhousie, Department of Economics.
  18. Blau, David M & Robins, Philip K, 1990. "Job Search Outcomes for the Employed and Unemployed," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 637-55, June.
  19. Borland, J. & McDonald, J.T., 2001. "Displaced Workers in Australia 1984-1996: Macroeconomic Conditions and Structural Change," Department of Economics - Working Papers Series 824, The University of Melbourne.
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