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Job search in the presence of a stressor: Does financial hardship change the effectiveness of job search?

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  • Gerards, Ruud
  • Welters, Riccardo

Abstract

Following a group of 2,973 Australian unemployed job seekers over time, we confirm predictions from Self-Determination Theory, Conservation of Resources Theory and Scarcity Theory that the presence of financial hardship during job search adversely affects job search quality and subsequently job search effectiveness (measured one year later). We show the importance in labor market research of controlling for a range of confounding factors including the impact of financial hardship on job search intensity. The implemented controls allow more precise inferences of the effect of financial hardship on job search quality/effectiveness, than so far achieved in this emerging body of literature.

Suggested Citation

  • Gerards, Ruud & Welters, Riccardo, 2022. "Job search in the presence of a stressor: Does financial hardship change the effectiveness of job search?," Journal of Economic Psychology, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:joepsy:v:90:y:2022:i:c:s0167487022000265
    DOI: 10.1016/j.joep.2022.102508
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    References listed on IDEAS

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    2. Hilbert, Leon P. & Noordewier, Marret K. & van Dijk, Wilco W., 2022. "Financial scarcity increases discounting of gains and losses: Experimental evidence from a household task," Journal of Economic Psychology, Elsevier, vol. 92(C).
    3. de Almeida, Filipa & Scott, Ian J. & Soro, Jerônimo C. & Fernandes, Daniel & Amaral, André R. & Catarino, Mafalda L. & Arêde, André & Ferreira, Mário B., 2024. "Financial scarcity and cognitive performance: A meta-analysis," Journal of Economic Psychology, Elsevier, vol. 101(C).
    4. Miele, Kai R., 2024. "Mental Health and Labor Market Effects of Anticipating Job Loss," CINCH Working Paper Series (since 2020) 82169, Duisburg-Essen University Library, DuEPublico.
    5. Fred van Raaij, W. & Riitsalu, Leonore & Põder, Kaire, 2023. "Direct and indirect effects of self-control and future time perspective on financial well-being," Journal of Economic Psychology, Elsevier, vol. 99(C).

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    More about this item

    Keywords

    Unemployment; Job search effectiveness; Financial hardship; Confounding relationships; Job search quality;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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