Job Search Incentives and Job Match Quality
Link to article:
Authors:
Gaure, Simen, Knut Røed and Lars Westlie
Year:
2012
Reference:
Vol 19, 438-450Summary
We examine the impacts of time-limited unemployment insurance (UI) and active labor market programs (ALMP) on the duration and outcome of job search in Norway. We use a comprehen-sive simultaneous equations model accounting for i) the duration of unemployment spells; ii) their outcomes, iii) subsequent employment stability; and iv) the earnings level associated with the first job. We find that time invested in job search pays off in form of higher earnings once a job match is formed. ALMP raises the probability of eventually finding a job as well as expected earnings, but at the cost of lengthening job search.
JEL:
C14, C15, C41, J64, J65, J68
Keywords:
Multivariate hazards, job search, job quality, timing-of-events, NPMLE, MMPH
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.: 185201
Frisch prosjekt: 1181 - Activation and social insurance
