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Job-Search Methods and Labor Market Transitions in a Segmented Economy


  • Silke Woltermann

    (University of Goettingen)


This paper examines the impact of job search methods on the output of the job search process in a segmented labor market. Theoretical models of job search, like the widely used search approach, generally contain only one parameter capturing all possible factors affecting the efficiency of search. Additionally, usually only two occupational states are considered: 'working' or 'searching'. In most countries though the labor market is segmented in formal and informal employment and self- employment. I argue that vacancies in these different labor market sectors are promoted via different channels and that part of the labor market segmentation originates from lack of information on vacancies in the formal sector. To evaluate the different search methods, I estimate their impact on exit rates of unemployed Brazilian workers by using multinomial logit models.

Suggested Citation

  • Silke Woltermann, 2003. "Job-Search Methods and Labor Market Transitions in a Segmented Economy," Labor and Demography 0310001, EconWPA.
  • Handle: RePEc:wpa:wuwpla:0310001
    Note: Type of Document - Acrobat PDF; pages: 23 ; figures: none

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    References listed on IDEAS

    1. James Ted McDonald & Christopher Worswick, 1998. "The Earnings of Immigrant Men in Canada: Job Tenure, Cohort, and Macroeconomic Conditions," ILR Review, Cornell University, ILR School, vol. 51(3), pages 465-482, April.
    2. Philip M. Bodman & Mark Crosby, 2000. "Phases of the Canadian business cycle," Canadian Journal of Economics, Canadian Economics Association, vol. 33(3), pages 618-633, August.
    3. James Ted McDonald & Christopher Worswick, 1997. "Unemployment Incidence of Immigrant Men in Canada," Canadian Public Policy, University of Toronto Press, vol. 23(4), pages 353-373, December.
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    Cited by:

    1. M. Ali Choudhary & Saima Mahmood & Gylfi Zoega, 2015. "Informal Labour Markets in Pakistan," BCAM Working Papers 1504, Birkbeck Centre for Applied Macroeconomics.

    More about this item


    Active labor market policy; search channels; segmented labor markets; informal employment;

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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