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An Empirical Analysis of Employed and Unemployed Job Search Behavior

David Blau

ILR Review, 1992, vol. 45, issue 4, 738-752

Abstract: This paper analyzes the job search activities of employed and unemployed job seekers using self-reported data from a 1980 survey. One novel finding from reduced form equations is that many searchers, both employed and unemployed, rejected at least one offer before accepting a job. The reduced form results are used to estimate reservation wages based on a fairly standard model of job search. Most of the job searchers accepted a job offer with a wage below the estimated reservation wage, suggesting that the model does not fit the data well.

Date: 1992
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