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."> 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."> The job search literature suggests that on-the-job search reduces the probability of un employed people finding jobs. However, there is li">
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Employed and Unemployed Job Seekers and the Business Cycle

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  • Simonetta Longhi
  • Mark Taylor
Abstract
type="main" xml:id="obes12029-abs-0001"> 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

  • Simonetta Longhi & Mark Taylor, 2014. "Employed and Unemployed Job Seekers and the Business Cycle," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(4), pages 463-483, August.
  • Handle: RePEc:bla:obuest:v:76:y:2014:i:4:p:463-483
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    1. Simonetta Longhi & Mark Taylor, 2013. "Occupational Change and Mobility Among Employed and Unemployed Job Seekers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(1), pages 71-100, February.
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    2. Tara Sinclair & Martha Gimbel, 2020. "Mismatch in Online Job Search," Working Papers 2020-1, The George Washington University, Institute for International Economic Policy.
    3. Poulissen, Davey & De Grip, Andries & Fouarge, Didier & Künn-Nelen, Annemarie, 2023. "Employers’ willingness to invest in the training of temporary versus permanent workers: A discrete choice experiment," Labour Economics, Elsevier, vol. 84(C).
    4. Varga, Júlia & Csillag, Márton, 2023. "A foglalkozási mobilitás változása Magyarországon két évtized adatai alapján [Changes in occupational mobility in Hungary over two decades]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1338-1360.
    5. Longhi, Simonetta, 2015. "Do the Unemployed Accept Jobs Too Quickly? A Comparison with Employed Job Seekers," IZA Discussion Papers 9112, Institute of Labor Economics (IZA).
    6. Chiara Mussida & Luca Zanin, 2020. "I found a better job opportunity! Voluntary job mobility of employees and temporary contracts before and after the great recession in France, Italy and Spain," Empirical Economics, Springer, vol. 59(1), pages 47-98, July.
    7. Marco Leonardi, 2017. "Job Mobility And Earnings Instability," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 260-280, January.

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