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Job Search by Employed and Unemployed Youth


  • Harry J. Holzer


Analysis of data from the New Youth Cohort of the National Longitudinal Survey yields evidence that young unemployed job seekers chose higher levels of search effort (as measured by number of methods used and time spent per method) and lower reservation wages (relative to offered wages) than did comparable employed job seekers in 1981. These differences in search choices at least partly explain differences in search outcomes between the two groups: unemployed searchers apparently were more likely than employed searchers to gain new employment, and the wages they obtained were slightly lower. The author argues that the greater search effort by unemployed job seekers is due to the higher costs of search they bear because of foregone earnings.

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  • Harry J. Holzer, 1987. "Job Search by Employed and Unemployed Youth," ILR Review, Cornell University, ILR School, vol. 40(4), pages 601-611, July.
  • Handle: RePEc:sae:ilrrev:v:40:y:1987:i:4:p:601-611

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    References listed on IDEAS

    1. Boskin, Michael J. & Hurd, Michael D., 1978. "The effect of social security on early retirement," Journal of Public Economics, Elsevier, vol. 10(3), pages 361-377, December.
    2. Deardorff, Alan V & Stafford, Frank P, 1976. "Compensation of Cooperating Factors," Econometrica, Econometric Society, vol. 44(4), pages 671-684, July.
    3. Roger H. Gordon & Alan S. Blinder, 1980. "Market wages, reservation wages, and retirement decisions," NBER Chapters,in: Econometric Studies in Public Finance, pages 277-308 National Bureau of Economic Research, Inc.
    4. Parsons, Donald O, 1982. "The Male Labour Force Participation Decision: Health, Reported Health, and Economic Incentives," Economica, London School of Economics and Political Science, vol. 49(193), pages 81-91, February.
    5. Rosen, Harvey S, 1976. "Taxes in a Labor Supply Model with Joint Wage-Hours Determination," Econometrica, Econometric Society, vol. 44(3), pages 485-507, May.
    6. John B. Burbidge & A. Leslie Robb, 1980. "Pensions and Retirement Behaviour," Canadian Journal of Economics, Canadian Economics Association, vol. 13(3), pages 421-437, August.
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