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Do You Need a Job to Find a Job?Deborah A. Cobb-ClarkUniversity of Melbourne - Melbourne Institute of Applied Economic and Social Research; Institute for the Study of Labor (IZA) Paul FrijtersQueensland University of Technology - School of Economics and Finance Guyonne R.J. KalbUniversity of Melbourne - Melbourne Institute of Applied Economic and Social Research July 2004 IZA Discussion Paper No. 1211 Abstract: This paper investigates whether job offers 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 offers. 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 offer 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.
Number of Pages in PDF File: 26 Keywords: Job-offer arrival rates, reservation wages, wage-offer distribution, directed search JEL Classification: C41, C14, J64 working papers seriesDate posted: July 2, 2004Suggested CitationContact Information
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