Job seekers can influence the arrival rate of job offers by the choice of search effort and the search methods they use. In this paper we empirically investigate the contribution of the use of different search methods on the outcome of search. Using unique data on the search behaviour of job seekers sampled from the inflow into employment during the year 1997 in Austria we analyse the quality of job matches in terms of wages and job durations. We find evidence for endogenous selection to the job matching channels. Persons with few social contacts or lower unobserved ability are more likely to be matched by the public employment service. Hence we conclude that selection may contribute to the unfavourable wage outcomes for jobs generated by the public employment service.

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe availability of affordable institutional child-care is increasingly discussed as an important determinant of the labour force participation of parents, particularly of mothers. This paper examines the impact of child-care costs on the employment rates of mothers with children younger than 15 years. Using data from the 1995 and 2002 Austrian Microcensus, combined with wage information from Austrian tax records, we estimate the impact of net wages and child-care costs on mothers' employment probabilities. In line with theoretical considerations and most of the international sub-literature, we find a negative elasticity of mothers' employment rates to child-care costs as well as positive elasticity with regard to wages. The point estimates for the impact of net-wages and child-care costs are of similar absolute size. Additionally, empirical results indicate that higher family income (without the earned income of the mother) reduces the employment probabilities of mothers. The availability of affordable institutional child-care is increasingly discussed as an important determinant of the labour force participation of parents, particularly of mothers. This paper examines the impact of child-care costs on the employment rates of mothers with children younger than 15 years. Using data from the 1995 and 2002 Austrian Micro-Census, combined with wage information from Austrian tax records, we estimate the impact of net wages and child-care costs on mothers' employment probabilities. In line with theoretical considerations and most of the international sub-literature, we find a negative elasticity of mothers' employment rates to child-care costs as well as positive elasticity with regard to wages. The point estimates for the impact of net-wages and child-care costs are of similar absolute size. Additionally, empirical results indicate that higher family income (without the earned income of the mother) reduces the employment probabilities of mothers.JEL Classification: C25, J13, J22

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