Employed and Unemployed Job Seekers and the Business Cycle

21 Pages Posted: 3 Jul 2014

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

Date Written: August 2014

Abstract

The job search literature suggests that on‐the‐job search reduces the probability of un employed people finding jobs. However, there is little evidence that employed and unemployed job seekers are similar or apply for the same jobs. We compare employed and unemployed job seekers in their individual characteristics, preferences over working hours, job‐search strategies and employment histories, and identify how differences vary over the business cycle. We find systematic differences which persist over the business cycle. Our results are consistent with a segmented labour market in which employed and unemployed job seekers are unlikely to directly compete with each other for jobs.

Suggested Citation

Longhi, Simonetta and Taylor, Mark Philip, Employed and Unemployed Job Seekers and the Business Cycle (August 2014). Oxford Bulletin of Economics and Statistics, Vol. 76, Issue 4, pp. 463-483, 2014. Available at SSRN: https://ssrn.com/abstract=2462328 or http://dx.doi.org/10.1111/obes.12029

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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