Employed and unemployed job seekers and the business cycle

Publication type

ISER Working Paper Series

Series Number

2013-02

Series

ISER Working Paper Series

Authors

Publication date

January 18, 2013

Abstract:

The job search literature suggests that on-the-job search reduces the probability of unemployed people finding a job. 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 terms of their individual characteristics, preferences over working hours, job-search strategies and employment histories, and identify how any 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.

Subject

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