Employed and Unemployed Job Seekers: Are They Substitutes?

Simonetta Longhi and Mark Taylor ()

No 5827, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The job search literature suggests that on-the-job search reduces the probability of unemployed people finding a job. However, there is no evidence that employed and unemployed job seekers are similar or apply for the same jobs. We combine the Labour Force Survey and the British Household Panel Survey to compare employed and unemployed job seekers in terms of individual characteristics, preferences over working hours, job-search strategies, and employment histories. We find substantial differences, which persist over the business cycle and remain after controlling for unobserved heterogeneity. We conclude that the unemployed do not directly compete with employed job seekers.

Keywords: job competition; unemployment; on-the-job search; employment histories; panel data (search for similar items in EconPapers)
JEL-codes: J29 J60 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2011-06
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (1)

Published - published as 'Employed and Unemployed Job Seekers and the Business Cycle' in: Oxford Bulletin of Economics and Statistics, 2014, 76 (4), 463-483

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Related works:
Working Paper: Employed and unemployed job seekers: are they substitutes? (2010)
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