Job Search Behavior over the Business Cycle

Mukoyama, Toshihiko; Patterson, Christina; Şahin, Ayşegül

doi:10.2139/ssrn.2494963

Cited by 54 publications

(76 citation statements)

References 26 publications

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“…34 For the model with ex ante heterogeneity, we assume that there are two types of workers, a low-x and a high-x type. We calibrate the x for each type by setting it to x low = −σ x and x high = −σ x , where σ x is chosen to match the standard deviation of residual wage offers that control for unobserved worker and job characteristics.…”

Section: Calibrationmentioning

confidence: 99%

Job Search Behavior among the Employed and Non-Employed

Faberman¹,

Mueller²,

Şahin³

et al. 2017

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We develop a unique survey that focuses on the job search behavior of individuals regardless of their labor force status and field it annually starting in 2013. We use our survey to study the relationship between search effort and outcomes for the employed and non-employed. Three important facts stand out: (1) on-the-job search is pervasive, and is more intense at the lower rungs of the job ladder; (2) the employed are about four times more efficient than the unemployed in job search; and (3) the employed receive better job offers than the unemployed. We set up an on-the-job search model with endogenous search effort, calibrate it to fit our new facts, and find that the search effort of the employed is highly elastic. We show that search effort substantially amplifies labor market responses to job separation and matching efficiency shocks over the business cycle.

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Section: Calibrationmentioning

confidence: 99%

Job Search Behavior among the Employed and Non-Employed

Faberman¹,

Mueller²,

Şahin³

et al. 2017

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“…Mukoyama et al (2014) combine information from the CPS data and the American Time Use Survey (ATUS) and obtain similar results.…”

mentioning

confidence: 83%

The slow job recovery in a macro model of search and recruiting intensity

Leduc¹,

Liu²

2015

ERWP

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Abstract. An estimated model with labor search frictions and endogenous variations in search intensity and recruiting intensity does well in explaining the deep recession and weak recovery of the U.S. labor market during and after the Great Recession. The model features a sunk cost of vacancy creation, under which firms rely on adjusting both the number of vacancies and recruiting intensity to respond to aggregate shocks. This stands in contrast to the textbook model with free entry, which implies constant recruiting intensity. Our estimation suggests that fluctuations in search and recruiting intensity driven by productivity and discount factor shocks help substantially bridge the gap between the actual and model-predicted job filling and finding rates.

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“…Therefore the matching probability for a worker is m(θ), where θ = v s , and that of a firm is 11 We do not include the possibility of endogenous search behavior by the unemployed (only on-the-job) for two reasons: First, the empirical studies on how search intensity of the unemployed varies over the cycle are inconclusive. There is evidence on both counter-cyclical search intensity (Mukoyama, Patterson, and Sahin (2014)) and pro-cyclical search intensity (Schwartz (2014)). Second, in our model even if we introduced endogenous search intensity of the unemployed, they would always (independent of the business cycle) choose a unique level of search intensity because, due to sequential auction wage setting with constant value of unemployment, the gains for the unemployed from search are constant.…”

Section: Environmentmentioning

confidence: 99%

Unemployment cycles

Lindenlaub¹,

Eeckhout²

2015

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The labor market by itself can create cyclical outcomes, even in the absence of exogenous shocks.We propose a theory that shows that the search behavior of the employed has profound aggregate implications for the unemployed. There is a strategic complementarity between active on-the-job search and vacancy posting by firms: active search changes the number of searchers and the duration of a job, and in the presence of sorting, it improves the quality of the pool of searchers. More vacancy posting in turn makes costly on-the-job search more attractive, a self-fulfilling belief. The absence of on-the-job search discourages vacancy posting, rendering costly on-the-job search unattractive.This model of multiple equilibria can account for large fluctuations in vacancies, unemployment, and job-to-job transitions; it provides a rationale for the Jobless Recovery through a novel channel of the employed searchers crowding out the unemployed; and it gives rise to a shift in the Beveridge Curve (the unemployment-vacancy locus). Each of these phenomena is matched in the data.

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Job Search Behavior over the Business Cycle

Cited by 54 publications

References 26 publications

Job Search Behavior among the Employed and Non-Employed

Job Search Behavior among the Employed and Non-Employed

The slow job recovery in a macro model of search and recruiting intensity

Unemployment cycles

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