Employed and unemployed job seekers: are they substitutes?

Publication type

ISER Working Paper Series

Series Number

2010-09

Series

ISER Working Paper Series

Authors

Publication date

March 31, 2010

Abstract:

The job search literature suggests that an increase in the proportion of job seekers who are employed reduces the probability of unemployed people finding a job. However, there is little evidence indicating that employed and unemployed job seekers have similar observed characteristics or that they apply for the same jobs. We use the British Labour Force Survey to compare employed and unemployed job seekers, and find differences in their individual characteristics, preferences over working hours, and job search strategies which do not vary with the business cycle. We conclude that unemployed people do not directly compete with employed job seekers.

Subjects

Notes

working paper

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