Measuring Heterogeneity in Job Finding Rates Among the Nonemployed Using Labor Force Status Histories

31 Pages Posted: 17 Oct 2014

See all articles by Marianna Kudlyak

Marianna Kudlyak

Federal Reserve Bank of San Francisco

Fabian Lange

McGill University

Multiple version iconThere are 3 versions of this paper

Date Written: October 10, 2014

Abstract

We use a novel approach to studying the heterogeneity in the job finding rates of the nonemployed by classifying the nonemployed by labor force status (LFS) histories, instead of using only one-month LFS. Job finding rates differ substantially across LFS histories: they are 25-30% among those currently out of the labor force (OLF) with recent employment, 10% among those currently OLF who have been unemployed but not employed in the previous two months, and 2% among those who have been OLF in all three previous months. This heterogeneity cannot be deduced from the one-month LFS or from one-month responses to the CPS survey questions about desire to work or recent search activity. We conclude that LFS histories is an important predictor of the nonemployed’s job finding probability, particularly for those OLF.

Keywords: Job Finding Rate, Search Process, OLF, Heterogeneity

JEL Classification: E24, E32, J30, J41, J63, J64

Suggested Citation

Kudlyak, Marianna and Lange, Fabian, Measuring Heterogeneity in Job Finding Rates Among the Nonemployed Using Labor Force Status Histories (October 10, 2014). FRB Richmond Working Paper No. 14-18. Available at SSRN: https://ssrn.com/abstract=2510822 or http://dx.doi.org/10.2139/ssrn.2510822

Marianna Kudlyak (Contact Author)

Federal Reserve Bank of San Francisco ( email )

101 Market Street
San Francisco, CA 94105
United States

Fabian Lange

McGill University ( email )

1001 Sherbrooke St. W
Montreal, Quebec H3A 1G5
Canada

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