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The Impacts of Labor Market Policies on Job Search Behavior and Post-Unemployment Job Quality
By Gaure, Simen, Knut Røed and Lars Westlie
Memorandum 22/2008
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Abstract |
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 Classification:
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C14, C15, C41, J64, J65, J68 |
| Keywords:
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Multivariate hazards, job search, job quality, timing-of-events, NPMLE, MMPH |
| Project:
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1156 Labour market exclusion
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| Financing:
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Norwegian Research Council |
| Contact:
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knut.roed@frisch.uio.no |
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