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Job Search Methods and Outcomes

  • John T. Addison
  • Pedro Portugal

In this paper we investigate the process of job search, using a unique, large-scale data set for Portugal that allows us to assess the effect of job search methods on escape rates from unemployment and, in a new departure, the impact of job-finding methods used by the unemployed on earnings. In each case, the characteristics of workers receive careful attention. In addition, the effectiveness of the job search process is evaluated in terms of the periodicity of the resulting job match. Some emphasis is accorded the role of the public employment agency which, despite its frequency as a search vehicle, is found to have a low hit rate and to lead to low-paying jobs. Such jobs are also shorter lasting, only partly because they are more likely to be of a fixed-term nature. The policy backdrop is provided by the "employment chapter" of the Treaty of Amsterdam. Given our results, some concern naturally arises as to the capacity of the public employment agency to meet the targets set under European employment initiatives.

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File URL: http://www.bportugal.pt/en-US/BdP%20Publications%20Research/WP199808.pdf
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Paper provided by Banco de Portugal, Economics and Research Department in its series Working Papers with number w199808.

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Date of creation: 1998
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Handle: RePEc:ptu:wpaper:w199808
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  1. 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.
  2. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366, March.
  3. Olivier Blanchard & Pedro Portugal, 1998. "What Hides Behind An Unemployment Rate: Comparing Portuguese and Us Unemployment," Working Papers w199803, Banco de Portugal, Economics and Research Department.
  4. Pedro Portugal & John T. Addison, 1998. "Unemployment Insurance and Joblessness in Portugal," Working Papers w199804, Banco de Portugal, Economics and Research Department.
  5. Gregg, Paul & Wadsworth, Jonathan, 1996. "How Effective Are State Employment Agencies? Jobcentre Use and Job Matching in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(3), pages 443-67, August.
  6. Jones, Stephen R G, 1989. "Job Research Methods, Intensity and Effects," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 51(3), pages 277-96, August.
  7. 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.
  8. David M. Blau, 1992. "An empirical analysis of employed and unemployed job search behavior," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(4), pages 738-752, July.
  9. Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey: Part I," Economic Inquiry, Western Economic Association International, vol. 14(2), pages 155-89, June.
  10. David M. Blau, 1992. "An Empirical Analysis of Employed and Unemployed Job Search Behavior," ILR Review, Cornell University, ILR School, vol. 45(4), pages 738-752, July.
  11. 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.
  12. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
  13. Narendranathan, Wiji & Nickell, Stephen, 1985. "Modelling the process of job search," Journal of Econometrics, Elsevier, vol. 28(1), pages 29-49, April.
  14. 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 637-55, June.
  15. Addison, John T & Portugal, Pedro, 1989. "Job Displacement, Relative Wage Changes, and Duration of Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 7(3), pages 281-302, July.
  16. John M. Barron & Wesley Mellow, 1979. "Search Effort in the Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 389-404.
  17. Schmitt, John & Wadsworth, Jonathan, 1993. "Unemployment Benefit Levels and Search Activity," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(1), pages 1-24, February.
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