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Employed and Unemployed Job Search: A Comparison of Choices and Outcomes among Youth

  • Harry J. Holzer

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.

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File URL: http://www.nber.org/papers/w1861.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1861.

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Date of creation: Mar 1986
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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.
Handle: RePEc:nbr:nberwo:1861
Note: LS
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  1. 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.
  2. Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey," Economic Inquiry, Western Economic Association International, vol. 14(3), pages 347-68, September.
  3. Keeley, Michael C & Robins, Philip K, 1985. "Government Programs, Job Search Requirements, and the Duration of Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 337-62, July.
  4. Kahn, Lawrence M & Low, Stuart A, 1982. "The Relative Effects of Employed and Unemployed Job Search," The Review of Economics and Statistics, MIT Press, vol. 64(2), pages 234-41, May.
  5. Black, Matthew, 1980. "Pecuniary Implications of On-the-Job Search and Quit Activity," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 222-29, May.
  6. Gottschalk, Peter & Maloney, Tim, 1985. "Involuntary Terminations, Unemployment, and Job Matching: A Test of Job Search Theory," Journal of Labor Economics, University of Chicago Press, vol. 3(2), pages 109-23, April.
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