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Regulating the timing of job search: evidence from the labor market for new college graduates

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  • Okudaira, Hiroko

Abstract

In entry-level labor markets, students search for post-graduation positions well in advance of their actual start dates, prompting debates over regulating job search timing. This study examines a unique case concerning the new college graduate labor market in Japan, where a guideline revision successfully delayed the timing of job searches and forced market participants to search under a shorter horizon. Based on differential exposures to the guideline revision across regions, I find that the revision significantly increased the employment rate at graduation. No positive effect was observed on students’ human capital investment. Additional analyses offers one plausible interpretation, that the positive employment effect was driven by thick market externality.

Suggested Citation

  • Okudaira, Hiroko, 2020. "Regulating the timing of job search: evidence from the labor market for new college graduates," Labour Economics, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:labeco:v:67:y:2020:i:c:s0927537120301457
    DOI: 10.1016/j.labeco.2020.101941
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    More about this item

    Keywords

    Entry-level labor market; Job search with deadline; Human capital investment;
    All these keywords.

    JEL classification:

    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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