Short Term Gain, Long Term Pain. The Effect of Informal Job Search Methods on Post-Displacement Outcomes

Colin Green ()

No 599230, Working Papers from Lancaster University Management School, Economics Department

Abstract: Informal job search methods could alleviate short-term labour market difficulties of displaced workers by providing information on job opportu- nities, allowing them to signal their productivity and may mitigate wage losses through better post-displacement job matching. However if dis- placement results from reductions in demand for specific sectors/skills, the use of informal job search methods may increase the risk of job insta- bility. We examine the effect of jobs search methods on post-displacement outcomes. While informal job search methods are associated with shorter unemployment duration, and lower wage losses, they lead to increased job instability and increased risk of subsequent job displacement.

Keywords: Job Displacement; Search Methods; Job Security (search for similar items in EconPapers)
Date: 2009
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