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Short Term Gain, Long Term Pain. The Effect of Informal Job Search Methods on Post-Displacement Outcomes

Abstract

Informal job search methods could alleviate short-term labour market difficulties of displaced workers by providing information on job opportu- nities, allowing them to signal their productivity and may mitigate wage losses through better post-displacement job matching. However if dis- placement results from reductions in demand for specific sectors/skills, the use of informal job search methods may increase the risk of job insta- bility. We examine the effect of jobs search methods on post-displacement outcomes. While informal job search methods are associated with shorter unemployment duration, and lower wage losses, they lead to increased job instability and increased risk of subsequent job displacement.

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Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 599230.

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Date of creation: 2009
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Handle: RePEc:lan:wpaper:599230
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Keywords: Job Displacement; Search Methods; Job Security;

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