Employed and Unemployed Job Search: A Comparison of Choices and Outcomes among Youth
This paper presents evidence that young unemployed job seekers choose higher levels of search effort (as measured by numbers of methods used and time spent per method) and lower relative reservation wages than do comparable employed seekers. The unemployed also have higher probabilities of gaining new employment, which reflect higher probabilities of receiving offers and especially higher probabilities of accepting them; as well as slightly lower wages.These differences in outcomes between the two groups are at least partly explained by differences in their respective search choices.The evidence thus suggests that unemployed job seekers have higher costs of search (from foregone earnings) than do the employed, causing the former to seek new jobs more eagerly.
|Date of creation:||Mar 1986|
|Publication status:||published as Holzer, Harry J. "Job Search by Employed and Unemployed Youth,"L Industrial and Labor Relations Review, Vol. 40, No. 4, July 1987, pp. 601-611.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
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- 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 683-691, September.
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