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Employed and Unemployed Job Seekers: Are They Substitutes?

Author

Listed:
  • Longhi, Simonetta

    (University of Reading)

  • Taylor, Mark P.

Abstract

The job search literature suggests that on-the-job search reduces the probability of unemployed people finding a job. However, there is no evidence that employed and unemployed job seekers are similar or apply for the same jobs. We combine the Labour Force Survey and the British Household Panel Survey to compare employed and unemployed job seekers in terms of individual characteristics, preferences over working hours, job-search strategies, and employment histories. We find substantial differences, which persist over the business cycle and remain after controlling for unobserved heterogeneity. We conclude that the unemployed do not directly compete with employed job seekers.

Suggested Citation

  • Longhi, Simonetta & Taylor, Mark P., 2011. "Employed and Unemployed Job Seekers: Are They Substitutes?," IZA Discussion Papers 5827, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5827
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Do unemployed and employed compete for the same jobs?
      by Economic Logician in Economic Logic on 2011-07-28 19:01:00

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    Cited by:

    1. Simonetta Longhi & Mark Taylor, 2013. "Occupational Change and Mobility Among Employed and Unemployed Job Seekers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(1), pages 71-100, February.
    2. Simonetta Longhi, 2012. "Job Competition and the Wage Curve," Regional Studies, Taylor & Francis Journals, vol. 46(5), pages 611-620, August.
    3. Longhi, Simonetta & P. Taylor, Mark, 2011. "Explaining differences in job search outcomes between employed and unemployed job seekers," ISER Working Paper Series 2011-17, Institute for Social and Economic Research.

    More about this item

    Keywords

    job competition; unemployment; on-the-job search; employment histories; panel data;
    All these keywords.

    JEL classification:

    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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    1. Economic Logic blog

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