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Short Term Gain, Long Term Pain

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  • Colin Green

Abstract

This paper examines the role of informal job search methods on the labour market outcomes of displaced workers. Informal job search methods could alleviate short-term labour market difficulties of displaced workers by providing information on job opportunities, allowing them to signal their productivity and may mitigate wage losses through better post-displacement job matching. However if displacement results from reductions in demand for specific sectors/skills, the use of informal job search methods may increase the risk of job instability. While informal job search methods are associated with lower wage losses, they lead to increased job instability and increased risk of subsequent job displacement. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Colin Green, 2012. "Short Term Gain, Long Term Pain," Journal of Labor Research, Springer, vol. 33(3), pages 337-352, September.
    • Handle: RePEc:spr:jlabre:v:33:y:2012:i:3:p:337-352
    DOI: 10.1007/s12122-012-9136-y
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    References listed on IDEAS

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    JEL classification:

    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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