Explaining Differences in Job Search Outcomes between Employed and Unemployed Job Seekers

33 Pages Posted: 1 Aug 2011

See all articles by Simonetta Longhi

Simonetta Longhi

University of Essex - Institute for Social and Economic Research (ISER); Institute for the Study of Labor (IZA); Tinbergen Institute

Mark Taylor

University of Essex

Abstract

We use individual data for Great Britain over the period 1992-2009 to compare the probability that employed and unemployed job seekers find a job and the quality of the job they find. The job finding rate of unemployed job seekers is 50 percent higher than that of employed job seekers, and this difference remains even when controlling for differences in observable worker characteristics and job search behaviour. We present evidence suggesting that these differences in the job finding probability is caused by behavioural differences between employed and unemployed job seekers rather than differences in characteristics. Consistent with search theory, we find that employed job seekers are more selective in evaluating job offers and are therefore less likely to find a job offer acceptable; for example, they are less likely to accept low-wage and temporary jobs, or jobs that do not meet their working hour requirements.

Keywords: on-the-job search, unemployment, job-finding rate

JEL Classification: J01, J20, J29, J62, J64

Suggested Citation

Longhi, Simonetta and Taylor, Mark Philip, Explaining Differences in Job Search Outcomes between Employed and Unemployed Job Seekers. IZA Discussion Paper No. 5860. Available at SSRN: https://ssrn.com/abstract=1899163

Simonetta Longhi (Contact Author)

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Mark Philip Taylor

University of Essex ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom
+44 1206 873553 (Phone)
+44 1206 873 153 (Fax)

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