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Do You Need a Job to Find a Job

Author

Listed:
  • Paul Frijters
  • Deborah Cobb-Clark
  • Guyonne Kalbzx

    (School of Economics and Finance, Queensland University of Technology)

Abstract

This paper investigates whether job o¤ers arrive more frequently for those in employment than for those in unemployment. To this end, we take advantage of a unique Australian data set which contains information on both accepted and rejected job o¤ers. Our estimation strategy takes account of the selectivity associated with the initial employment state and we allow for individual heterogeneity in the probability of obtaining jobs. Our results reveal that, across the wage range, individuals are about equally likely to obtain a job o¤er in employment as in unemployment. This implies that encouraging unemployed (rather than employed) search through the provision of unemployment benefits does not improve the speed of a job match.

Suggested Citation

  • Paul Frijters & Deborah Cobb-Clark & Guyonne Kalbzx, 2004. "Do You Need a Job to Find a Job," Paul Frijters Discussion Papers 2004-3, School of Economics and Finance, Queensland University of Technology.
  • Handle: RePEc:qut:pfrijt:2004-3
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    File URL: http://www.bus.qut.edu.au/paulfrijters/documents/jobofferwp_10.pdf
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    References listed on IDEAS

    as
    1. Paul Frijters & Bas van der Klaauw, 2006. "Job Search with Nonparticipation," Economic Journal, Royal Economic Society, vol. 116(508), pages 45-83, January.
    2. van der Klaauw, Bas & van Vuuren, Aico & Berkhout, Peter, 2004. "Labor Market Prospects, Search Intensity and the Transition from College to Work," IZA Discussion Papers 1176, Institute of Labor Economics (IZA).
    3. Bontemps, Christian & Robin, Jean-Marc & van den Berg, Gerard J, 2000. "Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(2), pages 305-358, May.
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    More about this item

    Keywords

    job-offer arrival rates; reservation wages; wage-offer distribution; directed search.;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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