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Employed and unemployed job search methods: Australian evidence on search duration, wages and job stability

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  • Colin Green

Abstract

This paper examines the use and impact of job search methods of both unemployed and employed job seekers. Informal job search methods are associated with relativel high level of job exit and shorter search duration. Job exists through the public employment agency (PEA) display positive duration dependence for the unemployed. This may suggest that the PEA is used as a job search method of last resort. Informal job search methods have lower associated duration in search and higher wages than the PEA or answering advertisements. However, informal job search methods are aossociated with a higher turnover level.

Suggested Citation

  • Colin Green, 2012. "Employed and unemployed job search methods: Australian evidence on search duration, wages and job stability," Working Papers 50029416, Lancaster University Management School, Economics Department.
  • Handle: RePEc:lan:wpaper:50029416
    as

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    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/JSM_OZ.pdf
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    References listed on IDEAS

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    1. Holzer, Harry J, 1987. "Informal Job Search and Black Youth Unemployment," American Economic Review, American Economic Association, vol. 77(3), pages 446-452, June.
    2. Holzer, Harry J, 1988. "Search Method Use by Unemployed Youth," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 1-20, January.
    3. Christopher A. Pissarides, 1994. "Search Unemployment with On-the-job Search," Review of Economic Studies, Oxford University Press, vol. 61(3), pages 457-475.
    4. John T. Addison & Pedro Portugal, 1998. "Job Search Methods and Outcomes," Working Papers w199808, Banco de Portugal, Economics and Research Department.
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    6. Datcher, Linda, 1983. "The Impact of Informal Networks of Quit Behavior," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 491-495, August.
    7. Blau, David M & Robins, Philip K, 1990. "Job Search Outcomes for the Employed and Unemployed," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 637-655, June.
    8. Osberg, Lars, 1993. "Fishing in Different Pools: Job Search Strategies and Job-Finding Success in Canada in the Early 1980s," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 348-386, April.
    9. Michael J. Pries, 2004. "Persistence of Employment Fluctuations: A Model of Recurring Job Loss," Review of Economic Studies, Oxford University Press, vol. 71(1), pages 193-215.
    10. John T. Addison & Pedro Portugal, 2002. "Job search methods and outcomes," Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 505-533, July.
    11. M. J. Andrews & S. Bradley & D. Stott, 2002. "Matching the Demand for and Supply of Training in the School-to-Work Transition," Economic Journal, Royal Economic Society, vol. 112(478), pages 201-219, March.
    12. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-1418, December.
    13. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Andrea Morescalchi, 2016. "The Puzzle Of Job Search And Housing Tenure: A Reconciliation Of Theory And Empirical Evidence," Journal of Regional Science, Wiley Blackwell, vol. 56(2), pages 288-312, March.
    2. Colin Green, 2012. "Short Term Gain, Long Term Pain," Journal of Labor Research, Springer, vol. 33(3), pages 337-352, September.
    3. Andrea Morescalchi, 2016. "A new career in a new town. Job search methods and regional mobility of unemployed workers," ERSA conference papers ersa16p307, European Regional Science Association.

    More about this item

    Keywords

    Job search; Informal networks; Turnover;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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