Advanced Search
MyIDEAS: Login to save this paper or follow this series

Discouraging Workers: Estimating the Impacts of Macroeconomic Shocks on the Search Intensity of the Unemployed

Contents:

Author Info

  • Stephen B. DeLoach

    ()
    (Department of Economics, Elon University)

  • Mark Kurt

    ()
    (Department of Economics, Elon University)

Abstract

Discouraged and marginally attached workers have received increased attention from policy makers over the past several years. Theoretically, periods of recessions and high unemployment should directly influence individualÕs decisions whether or not to search for employment, creating more discouraged workers. Since 2003, there have been a number of large macroeconomic shocks (e.g. housing bubble, credit crunch, mass layoffs, etc.) which should affect job search intensity. To date, the relative magnitude of these shocks on the search intensity of the unemployed (but currently undiscouraged workers) has not been established in the literature. Using daily time use dairies from the American Time Use Survey 2003-2009 allow us to proxy search intensity directly by aggregating time spent in minutes on several job search activities: time spent sending out resumes, contacting employers, interviewing, reading ads on the internet and so forth. Results from Tobit estimation indicate the existence of significant negative wealth effects on search intensity through changes in the stock market and housing values that help explain the apparent acyclicality of search intensity observed in the data.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://org.elon.edu/econ/WPS/wp2011-01.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Elon University, Department of Economics in its series Working Papers with number 2011-01.

as in new window
Length: 26 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:elo:wpaper:2011-01

Contact details of provider:
Postal: 2700 Campus Box Elon College, NC 27244-2010
Phone: +1(336) 278-6000
Fax: +1 (336) 278-5952
Email:
Web page: http://www.elon.edu/e-web/academics/business/economics/
More information through EDIRC

Related research

Keywords: search intensity; macroeconomic shocks; discouraged workers; business cycles;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Krause, Michael U. & Lubik, Thomas A., 2007. "On-the-job search and the cyclical dynamics of the labor market," Working Paper Series 0779, European Central Bank.
  2. Gautier, Pieter A & Moraga-González, José-Luis & Wolthoff, Ronald, 2007. "Structural Estimation of Search Intensity: Do Non-Employed Workers Search Enough?," CEPR Discussion Papers 6440, C.E.P.R. Discussion Papers.
  3. Christopher Pissarides, 2007. "The unemployment volatility puzzle: is wage stickiness the answer?," LSE Research Online Documents on Economics 4460, London School of Economics and Political Science, LSE Library.
  4. Dale T. Mortensen & Christopher A. Pissarides, 1993. "Job Creation and Job Destruction in the Theory of Unemployment," CEP Discussion Papers dp0110, Centre for Economic Performance, LSE.
  5. Robert E. Hall, 2005. "Employment Fluctuations with Equilibrium Wage Stickiness," American Economic Review, American Economic Association, vol. 95(1), pages 50-65, March.
  6. Eckstein, Zvi & van den Berg, Gerard J, 2004. "Empirical Labour Search: A Survey," CEPR Discussion Papers 4199, C.E.P.R. Discussion Papers.
  7. Jay Stewart, 2009. "Tobit or Not Tobit?," Working Papers 432, U.S. Bureau of Labor Statistics.
  8. Simon Burgess & Helene Turon, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies – A Comment," Bristol Economics Discussion Papers 05/573, Department of Economics, University of Bristol, UK.
  9. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, vol. 95(1), pages 25-49, March.
  10. Robert E. Hall & Paul R. Milgrom, 2005. "The Limited Influence of Unemployment on the Wage Bargain," NBER Working Papers 11245, National Bureau of Economic Research, Inc.
  11. Lentz, Rasmus, 2010. "Sorting by search intensity," Journal of Economic Theory, Elsevier, vol. 145(4), pages 1436-1452, July.
  12. Marcus Hagedorn & Iourii Manovskii, 2008. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited," American Economic Review, American Economic Association, vol. 98(4), pages 1692-1706, September.
  13. Merz, Monika, 1995. "Search in the labor market and the real business cycle," Journal of Monetary Economics, Elsevier, vol. 36(2), pages 269-300, November.
  14. Andolfatto, David, 1996. "Business Cycles and Labor-Market Search," American Economic Review, American Economic Association, vol. 86(1), pages 112-32, March.
  15. Dale T. Mortensen, 1977. "Unemployment insurance and job search decisions," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(4), pages 505-517, July.
  16. Krueger, Alan B. & Mueller, Andreas I., 2008. "Job Search and Unemployment Insurance: New Evidence from Time Use Data," IZA Discussion Papers 3667, Institute for the Study of Labor (IZA).
  17. World Bank, 2012. "World Development Indicators 2012," World Bank Publications, The World Bank, number 6014, October.
  18. Marianna Kudlyak, 2010. "Are wages rigid over the business cycle?," Economic Quarterly, Federal Reserve Bank of Richmond, issue 2Q, pages 179-199.
  19. Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 1-76.
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 in new window

Cited by:
  1. Christina Patterson & Aysegul Sahin & Toshihiko Mukoyama, 2013. "Job Search Behavior over the Business Cycle," 2013 Meeting Papers 988, Society for Economic Dynamics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:elo:wpaper:2011-01. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Barbour).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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