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Job Search Behavior among the Employed and Non-Employed

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  • R. Jason Faberman
  • Andreas I. Mueller
  • Ayşegül Şahin
  • Giorgio Topa

Abstract

We develop a unique survey that focuses on the job search behavior of individuals regardless of their labor force status and field it annually starting in 2013. We use our survey to study the relationship between search effort and outcomes for the employed and non-employed. Three important facts stand out: (1) on-the-job search is pervasive, and is more intense at the lower rungs of the job ladder; (2) the employed are about four times more efficient than the unemployed in job search; and (3) the employed receive better job offers than the unemployed. We set up an on-the-job search model with endogenous search effort, calibrate it to fit our new facts, and find that the search effort of the employed is highly elastic. We show that search effort substantially amplifies labor market responses to job separation and matching efficiency shocks over the business cycle.

Suggested Citation

  • R. Jason Faberman & Andreas I. Mueller & Ayşegül Şahin & Giorgio Topa, 2017. "Job Search Behavior among the Employed and Non-Employed," NBER Working Papers 23731, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:23731
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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • 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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