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http://ssrn.com/abstract=1261452
 
 

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Job Search and Unemployment Insurance: New Evidence from Time Use Data


Alan B. Krueger


Princeton University - Industrial Relations Section; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Andreas Mueller


Columbia University - Columbia Business School; Institute for the Study of Labor (IZA)


IZA Discussion Paper No. 3667

Abstract:     
This paper provides new evidence on job search intensity of the unemployed in the U.S., modeling job search intensity as time allocated to job search activities. The main findings are: 1) the average unemployed worker in the U.S. devotes about 41 minutes to job search on weekdays, which is substantially more than his or her European counterpart; 2) workers who expect to be recalled by their previous employer search substantially less than the average unemployed worker; 3) across the 50 states and D.C., job search is inversely related to the generosity of unemployment benefits, with an elasticity between -1.6 and -2.2; 4) the predicted wage is a strong predictor of time devoted to job search, with an elasticity in excess of 2.5; 5) job search intensity for those eligible for Unemployment Insurance (UI) increases prior to benefit exhaustion; 6) time devoted to job search is fairly constant regardless of unemployment duration for those who are ineligible for UI. A nonparametric Monte Carlo technique suggests that the relationship between job search effort and the duration of unemployment for a cross-section of job seekers is only slightly biased by length-based sampling.

Number of Pages in PDF File: 45

Keywords: unemployment, unemployment insurance, job search, time use, unemployment benefits, inequality

JEL Classification: J64, J65

working papers series


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Date posted: September 1, 2008  

Suggested Citation

Krueger, Alan B. and Mueller, Andreas, Job Search and Unemployment Insurance: New Evidence from Time Use Data. IZA Discussion Paper No. 3667. Available at SSRN: http://ssrn.com/abstract=1261452 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Contact Information

Alan B. Krueger (Contact Author)
Princeton University - Industrial Relations Section ( email )
Princeton, NJ 08544-2098
United States
609-258-4046 (Phone)
609-258-2907 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Andreas Mueller
Columbia University - Columbia Business School ( email )
3022 Broadway
New York, NY 10027
United States
HOME PAGE: http://www.gsb.columbia.edu/faculty/amueller/
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany
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