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Short Term Gain, Long Term Pain. The Effect of Informal Job Search Methods on Post-Displacement Outcomes

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Abstract

Informal job search methods could alleviate short-term labour market difficulties of displaced workers by providing information on job opportu- nities, allowing them to signal their productivity and may mitigate wage losses through better post-displacement job matching. However if dis- placement results from reductions in demand for specific sectors/skills, the use of informal job search methods may increase the risk of job insta- bility. We examine the effect of jobs search methods on post-displacement outcomes. While informal job search methods are associated with shorter unemployment duration, and lower wage losses, they lead to increased job instability and increased risk of subsequent job displacement.

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  • C Green, 2009. "Short Term Gain, Long Term Pain. The Effect of Informal Job Search Methods on Post-Displacement Outcomes," Working Papers 599230, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:599230
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