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The Impacts of Labor Market Policies on Job Search Behavior and Post-Unemployment Job Quality

  • Gaure, Simen
  • Røed, Knut

    ()

    (The Ragnar Frisch Centre for Economic Research)

  • Westlie, Lars

We examine empirically the impacts of labor market policies – in terms of unemployment insurance (UI) and active labor market programs (ALMP) – on the duration and outcome of job search and on the quality of a subsequent job. We find that time invested in job search tends to pay off in the form of higher earnings once a job match is formed. More generous UI raises expected unemployment duration, while improving the quality of the resultant job. Participation in ALMP raises the probability of finding a job and the level of expected earnings, but at the cost of lengthening job search.

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File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2008/Memo-22-2008.pdf
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Paper provided by Oslo University, Department of Economics in its series Memorandum with number 22/2008.

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Length: 34 pages
Date of creation: 16 Sep 2008
Date of revision:
Handle: RePEc:hhs:osloec:2008_022
Contact details of provider: Postal:
Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway

Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
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  17. Røed, Knut & Westlie, Lars, 2007. "Unemployment Insurance in Welfare States: Soft Constraints and Mild Sanctions," IZA Discussion Papers 2877, Institute for the Study of Labor (IZA).
  18. Simen Gaure & Knut Røed, 2007. "How Tight is the Labour Market?: Sources of Changes in the Aggregate Exit Rate from Unemployment across the Business Cycle," Journal of Business Cycle Measurement and Analysis, OECD Publishing,Centre for International Research on Economic Tendency Surveys, vol. 2007(2), pages 155-173.
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