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Job Search During a Pandemic Recession:Survey Evidence From the Netherlands

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  • Maria Balgova
  • Simon Trenkle
  • Christian Zimpelmann
  • Nico Pestel

Abstract

This paper studies job search behavior in the midst of a pandemic re- cession. We use long-running panel data from the Netherlands (LISS) and complement the core survey with our own COVID-specific module, con- ducted in June 2020, surveying job search e ort of employed as well as un- employed respondents. We estimate an empirical model of job search over the business cycle over the period 2008{2019 to explore the gap between predicted and actual job search behavior in 2020. We find that job search during the pandemic recession di ers strongly from previous downturns. The unemployed search signi cantly less than what we would normally observe during a recession of this size. For the employed, the propensity to search is even greater than what we would expect, but those who do search make significantly fewer job applications. Expectations about the duration of the pandemic seem to play a key role in explaining job search e ort for the unemployed in 2020. Furthermore, employed individuals whose work situation has been a ected by COVID-19 are searching more actively for a new job.

Suggested Citation

  • Maria Balgova & Simon Trenkle & Christian Zimpelmann & Nico Pestel, 2021. "Job Search During a Pandemic Recession:Survey Evidence From the Netherlands," CRC TR 224 Discussion Paper Series crctr224_2021_320, University of Bonn and University of Mannheim, Germany.
  • Handle: RePEc:bon:boncrc:crctr224_2021_320
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    References listed on IDEAS

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    1. Hans Martin von Gaudecker & Radost Holler & Lena Janys & Bettina Siflinger & Christian Zimpelmann, 2020. "Labour Supply During Lockdown and a “New Normal”: The Case of the Netherlands," CRC TR 224 Discussion Paper Series crctr224_2020_211, University of Bonn and University of Mannheim, Germany.
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    10. Stefano Della & Jörg Heining & Johannes F Schmieder & Simon Trenkle, 2023. "Evidence on Job Search Models from a Survey of Unemployed Workers in Germany," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(2), pages 1181-1232.
    11. Zimpelmann, Christian & Gaudecker, Hans-Martin von & Holler, Radost & Janys, Lena & Siflinger, Bettina, 2021. "Hours and income dynamics during the Covid-19 pandemic: The case of the Netherlands," Labour Economics, Elsevier, vol. 73(C).
    12. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis & Brent H. Meyer, 2021. "COVID-19 Is a Persistent Reallocation Shock," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 287-291, May.
    13. Gomme, Paul & Lkhagvasuren, Damba, 2015. "Worker search effort as an amplification mechanism," Journal of Monetary Economics, Elsevier, vol. 75(C), pages 106-122.
    14. Leyva Gustavo, 2018. "Against All Odds: Job Search during the Great Recession," Working Papers 2018-13, Banco de México.
    15. Toshihiko Mukoyama & Christina Patterson & Ayşegül Şahin, 2018. "Job Search Behavior over the Business Cycle," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(1), pages 190-215, January.
    16. Stephen DeLoach & Mark Kurt, 2013. "Discouraging Workers: Estimating the Impacts of Macroeconomic Shocks on the Search Intensity of the Unemployed," Journal of Labor Research, Springer, vol. 34(4), pages 433-454, December.
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    Citations

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    Cited by:

    1. D’Amuri, Francesco & De Philippis, Marta & Guglielminetti, Elisa & Lo Bello, Salvatore, 2022. "Slack and prices during Covid-19: Accounting for labor market participation," Labour Economics, Elsevier, vol. 75(C).
    2. Henri Bussink & Tobias Vervliet & Bas Weel, 2022. "The Short-Term Effect of the COVID-19 Crisis on Employment Probabilities of Labour-Market Entrants in the Netherlands," De Economist, Springer, vol. 170(2), pages 279-303, May.
    3. Carrillo-Tudela, Carlos & Clymo, Alex & Comunello, Camila & Jäckle, Annette & Visschers, Ludo & Zentler-Munro, David, 2023. "Search and reallocation in the COVID-19 pandemic: Evidence from the UK," Labour Economics, Elsevier, vol. 81(C).
    4. Arceo-Gomez, Eva O. & Campos-Vazquez, Raymundo M. & Esquivel, Gerardo & Alcaraz, Eduardo & Martinez, Luis A. & Lopez, Norma G., 2023. "The impact of COVID-19 infection on labor outcomes of Mexican formal workers," World Development Perspectives, Elsevier, vol. 29(C).
    5. Daniel Goller & Stefan C. Wolter, 2021. "“Too shocked to search” The COVID-19 shutdowns’ impact on the search for apprenticeships," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 157(1), pages 1-15, December.
    6. Diego A. Martin, 2024. "Women Seeking Jobs with Limited Information: Evidence from Iraq," CID Working Papers 157a, Center for International Development at Harvard University.
    7. Joseph Richardson, 2023. "Health Risks and Labour Supply," Working Papers 379420583, Lancaster University Management School, Economics Department.
    8. Higashi, Yudai & Sasaki, Masaru, 2023. "Did COVID-19 Deteriorate Mismatch in the Japanese Labor Market?," IZA Discussion Papers 15917, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    COVID-19; job search; labor supply; survey;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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