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Job Search Behavior among the Employed and Non-Employed

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  • Faberman, Jason

    () (Federal Reserve Bank of Chicago)

  • Mueller, Andreas I.

    () (University of Texas at Austin)

  • Sahin, Aysegül

    () (University of Texas at Austin)

  • Topa, Giorgio

    () (Federal Reserve Bank of New York)

Abstract

Using a unique new survey, we study the relationship between search effort and outcomes for employed and non-employed workers. We find that the employed fare better than the non-employed in job search: they receive more offers per application and are offered higher pay even after controlling for observable characteristics. We use an on-the-job search model with endogenous search effort and find that unobserved heterogeneity explains less than a third of the residual wage offer differential. The model calibrated using various moments from our survey provides a good fit to the data and implies a reasonable flow value of unemployment.

Suggested Citation

  • Faberman, Jason & Mueller, Andreas I. & Sahin, Aysegül & Topa, Giorgio, 2017. "Job Search Behavior among the Employed and Non-Employed," IZA Discussion Papers 10960, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10960
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    Cited by:

    1. Marcelo Arbex & Dennis O'Dea & David Wiczer, 2019. "Network Search: Climbing The Job Ladder Faster," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(2), pages 693-720, May.
    2. Ruohan Wu & Yuexing Lan & Xueyu Cheng, 2018. "Empirically Examining the Individual-Level Determinants of Job Searching Outcomes: a Non-linear Analysis under the Case of Chile," Journal of Economics, Race, and Policy, Springer, vol. 1(1), pages 3-15, July.
    3. Faccini, Renato & Melosi, Leonardo, 2019. "Bad Jobs and Low Inflation," CEPR Discussion Papers 13628, C.E.P.R. Discussion Papers.
    4. Fatih Karahan & Serdar Ozkan & Jae Song, 2019. "Anatomy of Lifetime Earnings Inequality: Heterogeneity in Job Ladder Risk vs. Human Capital," Staff Reports 908, Federal Reserve Bank of New York.
    5. Lochner, Benjamin & Merkl, Christian & Stüber, Heiko & Gürtzgen, Nicole, 2021. "Recruiting intensity and hiring practices: Cross-sectional and time-series evidence," Labour Economics, Elsevier, vol. 68(C).
    6. John Ameriks & Joseph Briggs & Andrew Caplin & Minjoon Lee & Matthew D. Shapiro & Christopher Tonetti, 2020. "Older Americans Would Work Longer If Jobs Were Flexible," American Economic Journal: Macroeconomics, American Economic Association, vol. 12(1), pages 174-209, January.
    7. Compton, Andrew, 2019. "A Search Theoretic Model of Part-Time Employment and Multiple Job Holdings," MPRA Paper 97003, University Library of Munich, Germany.
    8. Tara Sinclair & Martha Gimbel, 2020. "Mismatch in Online Job Search," Working Papers 2020-1, The George Washington University, Institute for International Economic Policy.
    9. Sanjay K. Chugh & Christian Merkl, 2016. "Efficiency And Labor Market Dynamics In A Model Of Labor Selection," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57, pages 1371-1404, November.
    10. Carlos Carrillo-Tudela & Bart Hobijn & Powen She & Ludo Visschers, 2014. "The Extent and Cyclicality of Career Changes: Evidence for the UK (first version)," Edinburgh School of Economics Discussion Paper Series 246, Edinburgh School of Economics, University of Edinburgh.
    11. Carrillo-Tudela, Carlos & Hobijn, Bart & She, Powen & Visschers, Ludo, 2016. "The extent and cyclicality of career changes: Evidence for the U.K," European Economic Review, Elsevier, vol. 84(C), pages 18-41.
    12. John J. Conlon & Laura Pilossoph & Matthew Wiswall & Basit Zafar, 2018. "Labor Market Search With Imperfect Information and Learning," NBER Working Papers 24988, National Bureau of Economic Research, Inc.
    13. Sanjay K. Chugh & Christian Merkl, 2016. "Efficiency And Labor Market Dynamics In A Model Of Labor Selection," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57, pages 1371-1404, November.
    14. R. Jason Faberman & Marianna Kudlyak, 2019. "The Intensity of Job Search and Search Duration," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(3), pages 327-357, July.
    15. Potter, Tristan, 2021. "Learning and job search dynamics during the Great Recession," Journal of Monetary Economics, Elsevier, vol. 117(C), pages 706-722.
    16. R. Jason Faberman & Andreas I. Mueller & Ayşegül Şahin* & Giorgio Topa, 2020. "The Shadow Margins of Labor Market Slack," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 52(S2), pages 355-391, December.
    17. Alexey Gorn, 2021. "The Role of Headhunters in Wage Inequality: It's All about Matching," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 40, pages 309-346, April.
    18. Azar, José & Marinescu, Ioana & Steinbaum, Marshall & Taska, Bledi, 2020. "Concentration in US labor markets: Evidence from online vacancy data," Labour Economics, Elsevier, vol. 66(C).
    19. Haomin Wang, 2019. "Intra-Household Risk Sharing and Job Search over the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 34, pages 165-182, October.
    20. Bradley, Jake & Kügler, Alice, 2019. "Labor market reforms: An evaluation of the Hartz policies in Germany," European Economic Review, Elsevier, vol. 113(C), pages 108-135.
    21. Haomin Wang, 2019. "Intra-Household Risk Sharing and Job Search over the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 34, pages 165-182, October.
    22. Jorge González Chapela, 2021. "Job Searching and the Weather: Evidence from Time-Use Data," Journal of Labor Research, Springer, vol. 42(1), pages 29-55, March.
    23. Song, Chen & Wei, Chao, 2019. "Unemployment or out of the labor force: A perspective from time allocation," Labour Economics, Elsevier, vol. 61(C).

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    More about this item

    Keywords

    job search; unemployment; on-the-job search; search effort; wage dispersion;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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