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The Cyclicality of On-the-Job Search Effort

Author

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  • Ahn Hie Joo

    (Federal Reserve Board, Washington, DC, USA)

  • Shao Ling

    (Amazon, Washington, DC, USA)

Abstract

This paper provides new evidence for cyclicality in the job-search effort of employed workers, on-the-job search (OJS) intensity, in the U.S. using American Time Use Survey and various cyclical indicators. We find that the probability of an employed worker to engage in OJS is statistically significantly countercyclical, while time spent on OJS of an employed job seeker is weakly countercyclical. The fear of job loss, employment uncertainty, and workers’ financial situations is crucial in the job search decision of employed individuals. The results imply that the precautionary motive might be the key driver of the countercyclicality in OJS intensity.

Suggested Citation

  • Ahn Hie Joo & Shao Ling, 2021. "The Cyclicality of On-the-Job Search Effort," The B.E. Journal of Macroeconomics, De Gruyter, vol. 21(1), pages 185-220, January.
    • Handle: RePEc:bpj:bejmac:v:21:y:2021:i:1:p:185-220:n:1
    DOI: 10.1515/bejm-2019-0245
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    References listed on IDEAS

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    Cited by:

    1. Hie Joo Ahn & James Hamilton, 2022. "Measuring Labor-Force Participation and the Incidence and Duration of Unemployment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 44, pages 1-32, April.
    2. Hie Joo Ahn & Choongryul Yang, 2022. "Effects of Monetary Policy on Household Expectations: The Role of Homeownership," Finance and Economics Discussion Series 2022-065, Board of Governors of the Federal Reserve System (U.S.).
    3. Simmons, Michael, 2023. "Job-to-job transitions, job finding and the ins of unemployment," Labour Economics, Elsevier, vol. 80(C).
    4. Hie Joo Ahn & James Hamilton, 2022. "Measuring Labor-Force Participation and the Incidence and Duration of Unemployment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 44, pages 1-32, April.

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