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Explaining Differences in Job Search Outcomes Between Employed and Unemployed Job Seekers

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Author Info

  • Longhi, Simonetta

    ()
    (ISER, University of Essex)

  • Taylor, Mark

    ()
    (University of Essex)

Abstract

We use individual data for Great Britain over the period 1992-2009 to compare the probability that employed and unemployed job seekers find a job and the quality of the job they find. The job finding rate of unemployed job seekers is 50 percent higher than that of employed job seekers, and this difference remains even when controlling for differences in observable worker characteristics and job search behaviour. We present evidence suggesting that these differences in the job finding probability is caused by behavioural differences between employed and unemployed job seekers rather than differences in characteristics. Consistent with search theory, we find that employed job seekers are more selective in evaluating job offers and are therefore less likely to find a job offer acceptable; for example, they are less likely to accept low-wage and temporary jobs, or jobs that do not meet their working hour requirements.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5860.

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Length: 33 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:iza:izadps:dp5860

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Keywords: on-the-job search; unemployment; job-finding rate;

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References

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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. 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.

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