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The Determinants of On-the-job Search; An Empirical Exploration

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  • Andrés Fuentes

Abstract

There was a surge in the number of employed people looking for another job in the United Kingdom in the 1980s. In this paper, we present a panel analysis of aggregate data and a cross-section analysis of individual data on on-the-job search in the United Kingdom. We find evidence that the availability of jobs and wage dispersion increase on-the-job search. The importance of these results is twofold. First, to the extent that on-the-job search responds to the tightness of the labor market, it can contribute to explaining the observed cyclical behavior of the unemployment outflow rate. Second, as shown in Fuentes (2002), to the extent that changes in on-the-job search can be explained by factors other than labor market tightness, such as wage dispersion, these shift the unemployment-vacancies relationship (the Beveridge curve) and therefore have a role to play in the determination of unemployment.

Suggested Citation

  • Andrés Fuentes, 2002. "The Determinants of On-the-job Search; An Empirical Exploration," IMF Working Papers 02/156, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:02/156
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    Cited by:

    1. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    2. Ponzo, Michela, 2009. "On-the-job search in italian labour markets: an empirical analysis," MPRA Paper 24200, University Library of Munich, Germany.

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