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Employed and Unemployed Job Seekers and the Business Cycle
Author(s) -
Longhi Simonetta,
Taylor Mark
Publication year - 2014
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/obes.12029
Subject(s) - seekers , business cycle , labour economics , unemployment , job creation , demographic economics , economics , business , political science , economic growth , keynesian economics , law
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.