Budapest Working Papers on the Labour Market No. BWP - 2016/6
In this study we explore the job search behavior of the unemployed using 16 waves of Labor Force Survey between 2010 and 2013. According to our results if unemployed individual was previously public workers, then it increases the likelihood that he search for a job through public employment office and it reduces the probability of the usage of all other search methods. We found that reservation wage and the sub-regional average wage affect the search intensity positively, while social assistance and the proportion of dependents in the household had a negative impact on the search intensity of the unemployed. The fact, that the unemployed received unemployment benefit, or not had no significant effect on search intensity. However, reducing the length of eligibility period and the maximum amount of unemployment benefits had a positive impact on the intensity of job search within one year after the introduction of new rules, but had no significant effect on the reservation wage. The positive impact of UI reform is somewhat overshadowed by that the search intensity has been started to grow before the introduction of new rules therefore it is possible that the new rules only reinforce an already existing process.