NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Job Search Behavior among the Employed and Non-Employed

R. Jason Faberman, Andreas I. Mueller, Ayşegül Şahin, Giorgio Topa

NBER Working Paper No. 23731
Issued in August 2017
NBER Program(s):Economic Fluctuations and Growth, Labor Studies

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.

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Document Object Identifier (DOI): 10.3386/w23731

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