The Impacts of Labor Market Policies on Job Search Behavior and Post-Unemployment Job Quality
Link to article:
Authors:
Gaure, Simen, Knut Røed and Lars Westlie
Year:
2008
Reference:
Memorandum
Number in series: 22
Summary
We examine empirically the impacts of labor market policies – in terms of unemployment insurance (UI) and active labor market programs (ALMP) – on the duration and outcome of job search and on the quality of a subsequent job. We find that time invested in job search tends to pay off in the form of higher earnings once a job match is formed. More generous UI raises expected unemployment duration, while improving the quality of the resultant job. Participation in ALMP raises the probability of finding a job and the level of expected earnings, but at the cost of lengthening job search.
JEL:
C14, C15, C41, J64, J65, J68
Keywords:
Multivariate hazards, job search, job quality, timing-of-events, NPMLE, MMPH
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.:
Frisch prosjekt: 1156 - Labour market exclusion
Contact:
knut.roed@frisch.uio.no
Financing:
Norwegian Research Council
