The Impact of Unemployment Insurance on Job Search: Evidence from Google Search Data

Abstract

Job search is a key choice variable in theories of labor markets but is difficult to measure directly. We develop a job search activity index based on Google search data, the Google Job Search Index (GJSI). We validate the GJSI with both survey- and web-based measures of job search. Unlike those measures, the GJSI is high-frequency, geographically precise, and available in real time. We demonstrate the GJSI’s utility by using it to study the effects of changes in the unemployment insurance (UI) system between 2008 and 2014 on job search, finding no evidence of economically meaningful decreases in aggregate search activity.

Keywords: Job Search, Unemployment Insurance, Moral Hazard, Internet Search, UI, Google Trends

JEL Classification: E24, E61, H53, J21, J64, J65, J68