Job search incentives and job match quality

Gaure, Simen; Røed, Knut; Westlie, Lars

doi:10.1016/j.labeco.2012.04.001

Cited by 31 publications

(41 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Among the limited amount of research on job match quality, several papers examine the relationship between unemployment duration and wage after unemployment. A positive effect of longer unemployment on higher wage is found in Ohkusa (2004) for Japan; Gaure, Røed and Westlie (2008) for Norway; and Addison, McKinley and Blackburn (2000) for the U.S., although the observed effects are rather small. Lalive (2007) finds no effect of extended unemployment insurance benefits on wage at post-unemployment job using Austrian social security data.…”

Section: Introductionmentioning

confidence: 95%

Is longer unemployment rewarded with longer job tenure?

Kohara

Sasaki

Machikita

2013

Journal of the Japanese and International Economies

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This paper examines whether or not a prolonged unemployment period can raise the quality of job matching after unemployment. We focus on job tenure as an indicator of a good quality job match after unemployment. We match two sets of Japanese administrative data compiled by the public employment security offices: one includes information about the circumstances of job seekers receiving unemployment insurance, and the other includes information about job seekers applying for jobs. We first show a negative relationship between unemployment duration and the subsequent job duration. Restricting the sample to job seekers who changed search behaviors in the final 59 days before expiration of unemployment insurance, we secondly show an even greater negative effect of unemployment duration on the following job duration. The importance lies not only in the duration of unemployment. If job seekers keep a high reservation wage and a low search intensity because of the benefits of unemployment insurance, and change them in response to the expiration of insurance, prolonged unemployment will result in short job duration after unemployment.JEL Classification: J64, J65, J68

show abstract

Section: Introductionmentioning

confidence: 95%

Is longer unemployment rewarded with longer job tenure?

Kohara

Sasaki

Machikita

2013

Journal of the Japanese and International Economies

View full text Add to dashboard Cite

show abstract

“…However, we also know that these policies potentially have some undesirable side-effects, such as forcing liquidity-constrained job-seekers to accept suboptimal job matches (Chetty, 2008). There is also evidence that the quality of accepted matches declines as the job seeker approaches UI exhaustion (Gaure et al, 2012). Strict sanction practices and "hard" duration constraints also inevitably push some job seekers -and their families -into poverty.…”

Section: Activation In Unemployment Insurancementioning

confidence: 99%

“…Røed and Raaum (2006) and Røed and Westlie (2012). A recent paper by Gaure et al (2012) evaluates effects of Norwegian ALMPs on a number of outcomes simultaneously -including the quality of a subsequent job match -and compares the estimated impacts with reported administrative costs. Since the authors use a multivariate hazard rate model to study all transitions (with nonparametric modeling of unobserved heterogeneity), they are also in a position to characterize the sorting into ALMP.…”

Section: Activation In Unemployment Insurancementioning

confidence: 99%

“…6 This conclusion obviously depends on assumptions about the duration of the added employment spells and of the 2.5% earnings premium. Gaure et al (2012) provide a simulation-based cost-benefit-analysis were they assume that all effects are washed out five years after unemployment entry. The benefit side then consists of 2 percentage point higher employment (of varying lengths) and 2.5% higher earnings during employment spells (until they are terminated by the simulation model or censored after five years).…”

Section: Endnotesmentioning

confidence: 99%

See 1 more Smart Citation

Active social insurance

Røed¹

2012

IZA J Labor Policy

Self Cite

View full text Add to dashboard Cite

The paper argues that a comprehensive activation strategy is called for -in both unemployment and disability insurance -to minimize the conflict between income insurance and work incentives and to prevent the economic crisis from causing a long-lasting decline in labor force participation. A review of recent empirical evidence, particularly from the Scandinavian countries, indicates that "mild" activation requirements effectively counteract moral hazard problems in social insurance. The paper also argues that the distinction between unemployment and disability is blurred, and that both temporary and permanent disability insurance programs should be designed to encourage and support the use of remaining (partial) work capacity.

show abstract

“…2 Specic training benets are paid to UI recipients who participate in labor market programs for example in Norway (Gaure et al, 2012) and Sweden (Richardson and van den Berg, 2013). Such benets are also paid in Austria, but Card et al (2007) use data on unemployment spells from the years 19812001 when the active labor market policy did not yet play an important role in Austria.…”

mentioning

confidence: 99%

The Spike at Benefit Exhaustion in the Finnish Labor Market

2017

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in The Spike at Benefit Exhaustion in the Finnish Labor Market MAY 2017Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. The Spike at Benefit Exhaustion in the Finnish Labor Market * Many studies have found that the exit rate from unemployment increases in the vicinity of the exhaustion day of unemployment insurance benefits. The extent to which this "spike" is driven by job search behavior is important for assessing the distortionary effect of unemployment insurance. Card, Chetty and Weber (American Economic Review 2007; 97: 113-118) find a large spike in the exit rate from registered unemployment but only a very small spike in the job finding rate in Austria. We replicate their analysis using matched register data for Finland. We find a large spike also in the job finding rate at the time of benefit exhaustion, even though it is clearly smaller than the spike in the exit rate from unemployment benefits. In addition, we demonstrate difficulties in measuring the time to benefit exhaustion when the benefit entitlement can elapse at a reduced rate during activation measures or part-time working. Unless the remaining benefit entitlement is directly observed in the data, the resulting measurement error can lead to downward biased estimates of the spikes at benefit exhaustion. JEL Classification:C41, J64, J65

show abstract

Job search incentives and job match quality

Cited by 31 publications

References 35 publications

Is longer unemployment rewarded with longer job tenure?

Is longer unemployment rewarded with longer job tenure?

Active social insurance

The Spike at Benefit Exhaustion in the Finnish Labor Market

Contact Info

Product

Resources

About