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

45 Pages Posted: 15 Apr 2013 Last revised: 2 Aug 2016

Date Written: July 31, 2016

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

Suggested Citation

Baker, Scott R. and Fradkin, Andrey, The Impact of Unemployment Insurance on Job Search: Evidence from Google Search Data (July 31, 2016). Available at SSRN: https://ssrn.com/abstract=2251548 or http://dx.doi.org/10.2139/ssrn.2251548

Scott R. Baker

Northwestern University, Kellogg School of Management, Department of Finance ( email )

Evanston, IL 60208
United States

Andrey Fradkin (Contact Author)

Boston University - Questrom School of Business ( email )

595 Commonwealth Avenue
Boston, MA MA 02215
United States

HOME PAGE: http://www.andreyfradkin.com

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