Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/170944 
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 10960
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using a unique new survey, we study the relationship between search effort and outcomes for employed and non-employed workers. We find that the employed fare better than the non-employed in job search: they receive more offers per application and are offered higher pay even after controlling for observable characteristics. We use an on-the-job search model with endogenous search effort and find that unobserved heterogeneity explains less than a third of the residual wage offer differential. The model calibrated using various moments from our survey provides a good fit to the data and implies a reasonable flow value of unemployment.
Subjects: 
job search
unemployment
on-the-job search
search effort
wage dispersion
JEL: 
E24
J29
J60
Document Type: 
Working Paper

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