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Employed and Unemployed Job Seekers: Are They Substitutes?

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Author Info

  • Longhi, Simonetta

    ()
    (ISER, University of Essex)

  • Taylor, Mark P.

    ()
    (University of Essex)

Abstract

The job search literature suggests that on-the-job search reduces the probability of unemployed people finding a job. However, there is no evidence that employed and unemployed job seekers are similar or apply for the same jobs. We combine the Labour Force Survey and the British Household Panel Survey to compare employed and unemployed job seekers in terms of individual characteristics, preferences over working hours, job-search strategies, and employment histories. We find substantial differences, which persist over the business cycle and remain after controlling for unobserved heterogeneity. We conclude that the unemployed do not directly compete with employed job seekers.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5827.

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Length: 40 pages
Date of creation: Jun 2011
Date of revision:
Handle: RePEc:iza:izadps:dp5827

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Related research

Keywords: on-the-job search; unemployment; job competition; employment histories; panel data;

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Do unemployed and employed compete for the same jobs?
    by Economic Logician in Economic Logic on 2011-07-28 14:01:00
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Cited by:
  1. repec:ese:iserwp:2011-25 is not listed on IDEAS
  2. Simonetta Longhi & Mark Taylor, 2013. "Occupational Change and Mobility Among Employed and Unemployed Job Seekers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(1), pages 71-100, 02.
  3. repec:ese:iserwp:2011-17 is not listed on IDEAS
  4. Longhi, Simonetta & Taylor, Mark P., 2011. "Explaining Differences in Job Search Outcomes Between Employed and Unemployed Job Seekers," IZA Discussion Papers 5860, Institute for the Study of Labor (IZA).

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  1. Economic Logic blog

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