Job Insecurity, Unemployment Insurance and On-the-Job Search Evidence from Older American Workers
40 Pages Posted: 22 Nov 2015 Last revised: 24 Nov 2015
Date Written: August 1, 2015
In this study I estimate that about 23% to 47% of older American on-the-job seekers search for another job because they feel insecure at their current employment. I also analyze whether unemployment insurance (UI) affects this relationship between job insecurity and on-the-job search. I find evidence that UI discourages on-the-job search, which in turn reduces the probability of starting a new job at a different employer. The average estimated effects are moderate but they mask important heterogeneity. On one hand, UI does not affect the search behavior of workers who do not believe to be at risk of job loss. These workers make up the majority of the employed population over 50. On the other hand, however, the effects can be substantial for workers with high levels of job insecurity.
Keywords: on-the-job search; unemployment benefits; job loss expectations; control function methods
JEL Classification: J64, J65, D84
Suggested Citation: Suggested Citation