Is longer unemployment rewarded with longer job tenure?

Miki Kohara, Masaru Sasaki () and Tomohiro Machikita

No 11E001, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: This paper examines whether or not a prolonged unemployment period can raise the quality of job matching after unemployment. We focus on job tenure as an indicator of a good quality job match after unemployment. We match two sets of Japanese administrative data compiled by the public employment security offices: one includes information about the circumstances of job seekers receiving unemployment insurance, and the other includes information about job seekers applying for jobs. We first show a negative relationship between unemployment duration and the subsequent job duration. Restricting the sample to job seekers who lower their reservation wage in the final 59 days before expiration of unemployment insurance, we secondly show an even greater negative effect of unemployment duration on the following job duration. The importance lies not only in the duration of unemployment. If job seekers keep a high reservation wage because of the benefits of unemployment insurance, and lower it in response to the expiration of insurance, prolonged unemployment will result in short job duration after unemployment.

Keywords: job search; quality of job match; unemployment duration; unemployment insurance (search for similar items in EconPapers)
JEL-codes: J64 J65 J68 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2011-02
New Economics Papers: this item is included in nep-ias and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Is longer unemployment rewarded with longer job tenure? (2013)
Working Paper: Is Longer Unemployment Rewarded with Longer Job Tenure? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:osp:wpaper:11e001

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