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Search Method Use by Unemployed Youth

  • Harry J. Holzer

In this paper I investigate the use of different search methods by unemployed youth. I present a job search model which shows that search method choices should be related to their costs and expected productivities, as well as other factors such as nonwage income and wage offer distributions. I then present empirical evidence on the use of these methods and their effects on employment outcomes. These results show that the most frequently used search methods, which are friends and relatives and direct applications without referral, are also the most productive in generating job offers and acceptances. Econometric evidence then shows that the number of methods used is affected by factors which presumably reflect market opportunities as well as income sources and needs. While the use of specific search methods respond differently to these factors, they are chosen in a manner which generates positive average effects on employment outcomes for those who use them. The results are thus consistent with the search model presented here.

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File URL: http://www.nber.org/papers/w1859.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1859.

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Date of creation: Mar 1986
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Publication status: published as Holzer, Harry J. "Search Method Use by Unemployed Youth," Journal of Labor Economics, 1988, Vol. 6, No. 1, January 1988, pp. 1-20.
Handle: RePEc:nbr:nberwo:1859
Note: LS
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  1. Albert Rees & Wayne Gray, 1982. "Family Effects in Youth Employment," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 453-474 National Bureau of Economic Research, Inc.
  2. Seater, John J, 1979. "Job Search and Vacancy Contacts," American Economic Review, American Economic Association, vol. 69(3), pages 411-19, June.
  3. McElroy, Marjorie B, 1985. "The Joint Determination of Household Membership and Market Work: The Case of Young Men," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 293-316, July.
  4. Chirinko, Robert S, 1982. "An Empirical Investigation of the Returns to Job Search," American Economic Review, American Economic Association, vol. 72(3), pages 498-501, June.
  5. Barron, John M & Gilley, Otis W, 1981. "Job Search and Vacancy Contacts: Note," American Economic Review, American Economic Association, vol. 71(4), pages 747-52, September.
  6. Datcher, Linda, 1983. "The Impact of Informal Networks of Quit Behavior," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 491-95, August.
  7. Barron, John M & McCafferty, Stephen, 1977. "Job Search, Labor Supply, and the Quit Decision: Theory and Evidence," American Economic Review, American Economic Association, vol. 67(4), pages 683-91, September.
  8. Pissarides, C A, 1979. "Job Matchings with State Employment Agencies and Random Search," Economic Journal, Royal Economic Society, vol. 89(356), pages 818-33, December.
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