Explaining differences in job search outcomes between employed and unemployed job seekers
We use individual data for Great Britain over the period 1992-2009 to compare the probability that employed and unemployed job seekers find a job, and the quality of the job they find. The job finding rate of unemployed job seekers is 50 percent higher than that of employed job seekers, and this difference seems to be due to behavioural differences between employed and unemployed job seekers rather than differences in characteristics. Consistent with search theory, we find that employed job seekers are more selective in evaluating job offers; for example, they are less likely to accept low-wage and temporary jobs, or jobs that do not meet their working hour requirements.
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