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Job Search Success: Comparing Job Offer Rates In and Out of Employment

Author

Listed:
  • Deborah Cobb-Clark

    (SPEAR Centre and Economics Program, RSSS, Australian National University)

  • Paul Frijters

    () (Economics Program, RSSS, Australian National University)

  • Guyonne Kalb

    () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

This paper investigates whether job offers arrive more frequently for those in employment than for those in unemployment. To this end, we take advantage of a unique Australian data set which contains information on both accepted and rejected job offers. Our estimation strategy takes account of the selectivity associated with the initial employment state and we allow for individual heterogeneity in the probability of obtaining jobs. Our results reveal that, across the wage range, individuals are about equally likely to obtain a job offer in employment as in unemployment. This implies that encouraging unemployed (rather than employed) search through the provision of unemployment benefits does not improve the speed of a job match.

Suggested Citation

  • Deborah Cobb-Clark & Paul Frijters & Guyonne Kalb, 2004. "Job Search Success: Comparing Job Offer Rates In and Out of Employment," Melbourne Institute Working Paper Series wp2004n13, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2004n13
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2004n13.pdf
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    References listed on IDEAS

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    1. Paul Frijters & Bas van der Klaauw, 2006. "Job Search with Nonparticipation," Economic Journal, Royal Economic Society, vol. 116(508), pages 45-83, January.
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    3. Bontemps, Christian & Robin, Jean-Marc & van den Berg, Gerard J, 2000. "Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(2), pages 305-358, May.
    4. Boeri, Tito, 1999. "Enforcement of employment security regulations, on-the-job search and unemployment duration," European Economic Review, Elsevier, pages 65-89.
    5. Pieter A. Gautier & José Luis Moraga-González, 2004. "Strategic Wage Setting and Coordination Frictions with Multiple Applications," CESifo Working Paper Series 1304, CESifo Group Munich.
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    7. Bas van der Klaauw & Aico van Vuuren & Peter Berkhout, 2004. "Labor Market Prospects, Search Intensity and the Transition from College to Work," Tinbergen Institute Discussion Papers 04-064/3, Tinbergen Institute.
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    12. Lawrence M. Kahn & Stuart A. Low, 1984. "An Empirical Model of Employed Search, Unemployed Search, and Nonsearch," Journal of Human Resources, University of Wisconsin Press, vol. 19(1), pages 104-117.
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    16. Kahn, Lawrence M & Low, Stuart A, 1982. "The Relative Effects of Employed and Unemployed Job Search," The Review of Economics and Statistics, MIT Press, pages 234-241.
    17. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-273, May.
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    Cited by:

    1. Nordlund, Madelende & Strandh, Mattias, 2014. "The relation between economic and non-economic incentives to work and employment chances among the unemployed," Working Paper Series 2014:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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