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Job search incentives and job match quality

  • Gaure, Simen
  • Røed, Knut
  • Westlie, Lars

We examine the impacts of time-limited unemployment insurance (UI) and active labor market programs (ALMP) on the duration and outcome of job search in Norway. We use a comprehensive simultaneous equations model accounting for i) the duration of unemployment spells; ii) their outcomes, iii) subsequent employment stability; and iv) the earnings level associated with the first job. We find that time invested in job search pays off in form of higher earnings once a job match is formed. ALMP raises the probability of eventually finding a job as well as expected earnings, but at the cost of lengthening job search.

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Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 19 (2012)
Issue (Month): 3 ()
Pages: 438-450

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Handle: RePEc:eee:labeco:v:19:y:2012:i:3:p:438-450
Contact details of provider: Web page: http://www.elsevier.com/locate/labeco

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