Effects of unemployment insurance entitlement on duration and job search outcome /

Cover title.

Essays on Job Search and Labor Market Dynamics

This dissertation consists of three separate essays on job search and labor market dynamics. In the first essay, “The Impact of Labor Market Conditions on Job Creation: Evidence from Firm Level Data”, I study how much changes in labor market conditions reduce employment fluctuations over the business cycle. Changes in labor market conditions make hiring more expensive during expansions and cheaper during recessions, creating counter-cyclical incentives for job creation. I estimate firm level elasticities of labor demand with respect to changes in labor market conditions, considering two margins: changes in labor market tightness and changes in wages. Using employer-employee matched data from Brazil, I find that all firms are more sensitive to changes in wages rather than labor market tightness, and there is substantial heterogeneity in labor demand elasticity across regions. Based on these results, I demonstrate that changes in labor market conditions reduce the variance of employment growth over the business cycle by 20% in a median region, and this effect is equally driven by changes along each margin. Moreover, I show that the magnitude of the effect of labor market conditions on employment growth can be significantly affected by economic policy. In particular, I document that the rapid growth of the national minimum wages in Brazil in 1997-2010 amplified the impact of the change in labor market conditions during local expansions and diminished this impact during local recessions.

In the second essay, “A Framework for Estimating Persistence of Local Labor

Demand Shocks”, I propose a decomposition which allows me to study the persistence of local labor demand shocks. Persistence of labor demand shocks varies across industries, and the incidence of shocks in a region depends on the regional industrial composition. As a result, less diverse regions are more likely to experience deeper shocks, but not necessarily more long lasting shocks. Building on this idea, I propose a decomposition of local labor demand shocks into idiosyncratic location shocks and nationwide industry shocks and estimate the variance and the persistence of these shocks using the Quarterly Census of Employment and Wages (QCEW) in 1990-2013.

In the third essay, “Conditional Choice Probability Estimation of Continuous- Time Job Search Models”, co-authored with Peter Arcidiacono and Arnaud Maurel, we propose a novel, computationally feasible method of estimating non-stationary job search models. Non-stationary job search models arise in many applications, where policy change can be anticipated by the workers. The most prominent example of such policy is the expiration of unemployment benefits. However, estimating these models still poses a considerable computational challenge, because of the need to solve a differential equation numerically at each step of the optimization routine. We overcome this challenge by adopting conditional choice probability methods, widely used in dynamic discrete choice literature, to job search models and show how the hazard rate out of unemployment and the distribution of the accepted wages, which can be estimated in many datasets, can be used to infer the value of unemployment. We demonstrate how to apply our method by analyzing the effect of the unemployment benefit expiration on duration of unemployment using the data from the Survey of Income and Program Participation (SIPP) in 1996-2007.

The role of networking and social media tools during job search: an information behaviour perspective.

The paper presents a critical analysis of the extant literature pertaining to the networking behaviours of young jobseekers in both offline and online environments. A framework derived from information behaviour theory is proposed as a basis for conducting further research in this area. Method. Relevant material for the review was sourced from key research domains such as library and information science, job search research, and organisational research. Analysis. Three key research themes emerged from the analysis of the literature: (1) social networks, and the use of informal channels of information during job search, (2) the role of networking behaviours in job search, and (3) the adoption of social media tools. Tom Wilson’s general model of information behaviour was also identified as a suitable framework to conduct further research. Results. Social networks have a crucial informational utility during the job search process. However, the processes whereby young jobseekers engage in networking behaviours, both offline and online, remain largely unexplored. Conclusion. Identification and analysis of the key research themes reveal opportunities to acquire further knowledge regarding the networking behaviours of young jobseekers. Wilson’s model can be used as a framework to provide a holistic understanding of the networking process, from an information behaviour perspective.

Are Job Networks Localized in a Developing Economy? Search Methods for Displaced Workers in Thailand

Effects of localized personal networks on the choice of search methods are studied in this paper using evidence of displaced workers by establishment closure in Thailand Labor Force Survey, 2001. For the blocks/villages level, there is less significant evidence of local interactions between job-seekers and referrals in developing labor markets. The effects of localized personal networks do not play an important role in the probability of unemployed job-seekers seeking assistance from friends and relatives. Convincing evidence from the data supports the proposition that both self-selection of individual background-like professions and access to large markets determine the choice of job search method.

Using the web to look for work: Implications for online job seeking and recruiting

Purpose - The web is now a significant component of the recruitment and job search process. However, very little is known about how companies and job seekers use the web, and the ultimate effectiveness of this process. The specific research questions guiding this study are: how do people search for job-related information on the web? How effective are these searches? And how likely are job seekers to find an appropriate job posting or application? Design/methodology/approach - The data used to examine these questions come from job seekers submitting job-related queries to a major web search engine at three points in time over a five-year period. Findings - Results indicate that individuals seeking job information generally submit only one query with several terms and over 45 percent of job-seeking queries contain a specific location reference. Of the documents retrieved, findings suggest that only 52 percent are relevant and only 40 percent of job-specific searches retrieve job postings. Research limitations/implications - This study provides an important contribution to web research and online recruiting literature. The data come from actual web searches, providing a realistic glimpse into how job seekers are actually using the web. Practical implications - The results of this research can assist organizations in seeking to use the web as part of their recruiting efforts, in designing corporate recruiting web sites, and in developing web systems to support job seeking and recruiting. Originality/value - This research is one of the first studies to investigate job searching on the web using longitudinal real world data. © Emerald Group Publishing Limited.

Mature age job seekers: the role of proactivity

Purpose In the context of demographic and economic changes, helping mature age job seekers find employment is imperative. The purpose of this paper is to examine mature age job seekers’ proactive personality as a moderator of the relationship between age and job search intensity; and to examine job search self-efficacy as a mediator of this moderation effect. It was hypothesized that the generally negative relationships between age and job search self-efficacy and intensity are weaker among job seekers with a more proactive personality. Design/methodology/approach In total, 188 job seekers between 40 and 64 years completed an online questionnaire. Data were analyzed using structural equation modeling. Findings Consistent with previous research, age was negatively related to job search intensity. Proactive personality was positively related to job search intensity and moderated the relationship between age and job search intensity. Extending previous research, proactive personality also positively predicted job search self-efficacy and moderated the relationship between age and job search self-efficacy which, in turn, positively predicted job search intensity. Research limitations/implications Potential limitations of the study include the cross-sectional design, sample selectivity, and the omission of possibly important control variables. Practical implications Practitioners, organizations, and societies concerned with helping mature age job seekers find employment could provide additional support to those with a less proactive personality and low job search self-efficacy. Originality/value This study extends previous research by showing that mature age job seekers’ job search self-efficacy mediates the moderating effect of proactive personality on the relationship between age and job search intensity.

Parental Leave and Mothers' Careers: The Relative Importance of Job Protection and Cash Benefits

Job protection and cash benefits are key elements of parental leave (PL) systems. We study how these two policy instruments affect return-to-work and medium-run labour market outcomes of mothers of newborn children. Analysing a series of major PL policy changes in Austria, we find that longer cash benefits lead to a significant delay in return-to-work, particularly so in the period that is job-protected. Prolonged parental leave absence induced by these policy changes does not appear to hurt mothers' labour market outcomes in the medium run. We build a non-stationary model of job search after childbirth to isolate the role of the two policy instruments. The model matches return-to-work and return to same employer profiles under the various factual policy configurations. Counterfactual policy simulations indicate that a system that combines cash with protection dominates other systems in generating time for care immediately after birth while maintaining mothers' medium-run labour market attachment.

A search-theoretic explanation for the negative correlation between labor income and impatience

Lawrance (1991) has shown, through the estimation of consumption Euler equations, that subjective rates of impatience (time preference) in the U.S. are three to Öve percentage points higher for households with lower average labor incomes than for those with higher labor income. From a theoretical perspective, the sign of this correlation in a job-search model seems at Örst to be undetermined, since more impatient workers tend to accept wage o§ers that less impatient workers would not, thereby remaining less time unemployed. The main result of this paper is showing that, regardless of the existence of e§ects of opposite sign, and independently of the particular speciÖcations of the givens of the model, less impatient workers always end up, in the long run, with a higher average income. The result is based on the (unique) invariant Markov distribution of wages associated with the dynamic optimization problem solved by the consumers. An example is provided to illustrate the method.

Job-seeking strategies in Trinidad and Tobago

Includes bibliography

Life in the baby boomer library world : a survival guide

According to Australian Job Search, just 14% of librarians are under the age of 35. As a Generation Y librarian, flexibility is a key factor to ensuring survival in the Baby Boomer library and overcoming employment, promotion and in particular stereotype barriers. This paper draws upon generational and library workforce research, coupled with industry experience to provide practical advice and strategies to break through both personal and professional barriers for the Generation Y librarian in the Baby Boomer library world. Industry understanding, drawn from personal experiences of working in public, education and special libraries, utilises my journey as a librarian since graduation in 2005 to discuss barriers faced and methods for breaking through. In my previous position as Teaching and Learning Librarian at Northern Melbourne Institute of TAFE from 35 library staff I was the sole member under 30. In addition I was the youngest member of the Library Management Team by 20 years, providing a perfect example of the Generation Y librarian within a Baby Boomer environment. This experience provides the platform for exploring strategies for understanding and overcoming ageist ideas, generational stereotypes, and employment barriers. Discussion regarding the need to develop sound industry knowledge for survival within the library world will also be raised.

A people-to-people matching system using graph mining techniques

A people-to-people matching system (or a match-making system) refers to a system in which users join with the objective of meeting other users with the common need. Some real-world examples of these systems are employer-employee (in job search networks), mentor-student (in university social networks), consume-to-consumer (in marketplaces) and male-female (in an online dating network). The network underlying in these systems consists of two groups of users, and the relationships between users need to be captured for developing an efficient match-making system. Most of the existing studies utilize information either about each of the users in isolation or their interaction separately, and develop recommender systems using the one form of information only. It is imperative to understand the linkages among the users in the network and use them in developing a match-making system. This study utilizes several social network analysis methods such as graph theory, small world phenomenon, centrality analysis, density analysis to gain insight into the entities and their relationships present in this network. This paper also proposes a new type of graph called “attributed bipartite graph”. By using these analyses and the proposed type of graph, an efficient hybrid recommender system is developed which generates recommendation for new users as well as shows improvement in accuracy over the baseline methods.

Regressive measures won’t help youth into work or training

The 2014 federal budget implemented a so-called crackdown on what Minister for Social Services Kevin Andrews calls young people who are content to “sit on the couch at home and pick up a welfare cheque”. The crackdown will change access to income support for people under 30 years of age. From January 1 2015, all young people seeking Newstart Allowance and Youth Allowance for the first time will be required to “demonstrate appropriate job search and participation in employment services support for six months before receiving payments”. Upon qualifying, recipients must then spend 25 hours per week in Work for the Dole in order to receive income support for a six-month period. What happens beyond this six months is unclear. What is clear is that these policy changes, together with the Minister’s accompanying statements, are informed by a deficit view of disadvantaged youth. It is a view that demonstrates how little politicians know or understand about these young peoples’ past circumstances.

Recruiting/hiring of older workers

This chapter reviews five key components of the recruitment process with regard to an aging workforce. First, targeted recruitment entails that organizations understand the needs, preferences, and strengths of older workers. Second, the recruitment message should communicate job and organizational characteristics that are attractive to older jobseekers. Third, the recruitment source should be consistent with the mediayse and job-search behaviors of older jobseekers. Fourth, the characteristics and behaviors of recruiters play an essential role in the recruitment of older applicants. Finally, organizations need to convey an attractive image of themselves as employers for older workers. Throughout the chapter, best practices are contrasted with available research evidence, and directions for future research are outlined.