Job Search Duration Research Articles

The Impact of Education Level and Gender on Job Search Duration in Turkey

AbstractThis study examines the effects of changes in unemployment rates on job search duration based on education level and gender in Turkey. Using monthly data obtained from the Turkish Statistical Institute for the period January 2005 through February 2013, we investigated the relationship between job search behavior and unemployment among participants with different education levels and genders. Results show that, in general, unemployment rate negatively affected the university graduates' probability of finding a job, though male university graduates' probability of finding a job was affected positively from their unemployment rate. High school graduates were affected positively from an increase in the overall unemployment rate, and when females and males were examined separately, the unemployment rate of the each group showed positive effects. Considering that vocational high school graduates obtain the same degree as traditional high school graduates but are taught required skills for specific jobs, our findings differed for this group compared with traditional high school graduates showing similarities with the results for university graduates. For the illiterate group, unemployment rate was positively related to job-seeking behavior; therefore, unskilled workers found jobs easily during high unemployment periods.Keywords: Job search * Job search duration * Unemployment * Education * Vector Error Correction ModelThere are two fundamental components that determine the reservation wage and the optimum point to conduct a job search: The education level of the job seeker (i.e., the main element of the reservation wage determination) and the market's current unemployment rate. Another important element is the behavioral differences between males and females. In this context, Ashenfelter and Ham (1979), Nickell (1979), Kiefer (1985), and Kettunen (1997) examined the relationship between education and unemployment, while Durand (1975), Pampel and Tanaka (1986), Psacharopoulos and Tzannatos (1989), Schultz (1990), Tansel (2001), and Bildirici, Aykac, Ozaksoy, and Akgul (2012) emphasized the differences of job search behavior, unemployment rate, and reservation wage determination between males and females, particularly during economic crisis periods.A limited number of previous studies have examined this issue specifically within Turkey. Dayioglu and Kasnakoglu (1997), Tunali (1997), Ozar and Senesen (1998), and Dayioglu (2000) evaluated the education level and labor force participation in Turkey, while Tasci and Darici (2009) and Kumas and Caglar (2011) examined the unemployment rate according to the gender gap. Previous research on the topic is limited due to the absence of reliable data on wages, a problem that still exists and causes issues during econometric analysis processes.The relationship between job search behavior and education and unemployment rate has drawn attention in both job search theory and human capital theory.In human capital theory, chosen education level maximizes the utility and income for a person's life. Early empirical research on the subject was conducted by De Wolff and van Slijpe (1973), Willis and Rosen (1979), Garen (1984), and Oosterbeek (1990). Determination of the optimum education level is a crucial issue, as Spence (1973), Hartog (1981; 1986), Duncan and Hoffmen (1981), Tsang and Levin (1985), Rumberger (1981), and Hartog and Oosterbeek (1988) showed that choosing an education level above the optimum point can cause complications in the long run.In job search models, it is assumed that the higher the level of education, the larger the increase in job opportunities. Since job-offer details proposed to individuals differ for the same job, they build up a job description for each individual. Furthermore, it is assumed that as a result of the increase in job opportunities by schooling year, employment offers that fall short of the education level can be accepted, but the ones that exceed it cannot be accepted or proposed. …

Procrastinators and hyperbolic discounters: Transition probabilities of moving from temporary into regular employment

Temporary agency work (TAW) is believed to facilitate matching between firms and job searchers, which results in shortening the unemployment and job search duration. On the other hand, as firms hiring temporary workers have less incentive to train them, it is difficult for low-skilled temporary workers to find better jobs in the future. This study examines the effect of TAW experience on employment transitions in the Japanese labor market, focusing on individual time preferences. Investments in one’s career involve a trade-off between immediate costs and future rewards, and thus individual heterogeneity in time preferences may explain the behavioral patterns of the labor force in career choices. The results indicate that those who have a higher degree of impatience are likely to engage in the TAW sector. In addition, those who have held temporary jobs are less likely to move into regular job positions, but no significant wage differences are observed between those with the TAW experience and those without the TAW experience. The observed negative effect of TAW on the transition probability into regular employment becomes smaller or statistically insignificant, when time preferences are additionally controlled for. The combined findings suggest that the possible negative effect may be attributed to the difference in the time preferences between individuals with the TAW experience and those without.

The Intensity of Job Search and Search Duration

We use micro data on applications to job openings by individuals on a job search website to study the relationship between search intensity and search duration. Our data allow us to control for several factors that can affect the measured relationship between intensity and duration, including the composition of job seekers and changes in the number of available job openings over the duration of search. We find that a job seeker sends fewer applications per week as search continues. We also find that job seekers who search on the website longer tend to send more applications in every period. We attribute this finding to job seeker heterogeneity. Controlling for the local stock of vacancies does little to affect the result, mainly because job seekers continue to apply to older vacancies well into their search spell.

Migrant Networks and Job Search: Evidence from Thailand

Social networks may be important to internal migrants in developing countries where the extent of information asymmetry is sizeable. This paper identifies network effects among rural-urban migrants in Thailand by exploiting heterogeneous response to rainfall shocks as exogenous variation affecting network size. While networks substantially reduce the duration of job search, in this case they tend to direct migrants towards agricultural (rather than non-agricultural) jobs because the local average treatment effects estimator identifies what happens to employment outcomes when the agricultural part of the network increases.

Cash-on-hand and the Duration of Job Search: Quasi-experimental Evidence from Norway

We investigate the causal eect of lump-sum severance payments on job search duration in Norway. Identi…cation is achieved by exploiting dis- continuities in the available amounts along the age and time dimensions. The results can be interpreted as evidence of liquidity constraints, thus suggesting that in the spirit of the Baily-Chetty model of Optimal Unem- ployment Insurance current bene…ts are too low. Since Norway has one of the most equitable wealth distributions and one of the most generous UI systems of all OECD economies, this suggests that liquidity constraints are likely to matter also in other OECD economies.

Learning environment and graduates' transition period

This study investigated the model of learning environment and graduates' transition period from higher education to employment. The responses to a questionnaire of 13,532 graduates from eight countries were analyzed using a structural equation modeling approach. The tested model indicates a close fit based on Chi-square = 233.34, df = 10, p < 0.001; Chi-square / df = 23.33; CFI = 0.984; RMSEA = 0.042. The results showed that learning environment, as composite of structure of courses, institutional support, infrastructure, student activity, and research, affects graduates competencies. Graduates' competencies were shown to have a significant relationship with graduates' transition period in term of job search duration. The higher graduates' competencies are; the shorter the transition period will be. In addition, transition period is also influenced by study abroad experience. Graduates with experience abroad reported to have a shorter period of job search.

Procrastinators and Hyperbolic Discounters: Probability of Transition from Temporary to Full-time Employment

Temporary agency work (TAW) is believed to facilitate the matching between firms and on-the-job searchers. This leads to shortening of the unemployment and job search duration. On the other hand, firms that hire temporary workers have less incentive to train them, which makes it difficult for low-skilled temporary workers to find a better job in future. Current literature has not established whether TAW employment improves the welfare of either or both the employers and employees. Therefore, this paper examines the effect of TAW employment in the Japanese labor market on employment transitions focusing on individual time preferences. Investments in one’s career involve a trade-off between immediate costs and later rewards, and thus, individual heterogeneity in time preferences may explain the behavioral patterns of labor force. We find that TAW employees have a tendency toward impatience and hyperbolic discounting. In addition, those who have held temporary job are less likely to move into full-time job positions, but no significant wage differences are observed. The strength of the negative effects on the transition probabilities declines over time but the significant effects remain over the following years. Our results indicate that TAW for employees in Japan is more likely to function as a “dead-end” rather than “stepping stone” toward stable full-time employment.

Job search incentives and job match quality

We examine the impacts of time-limited unemployment insurance (UI) and active labor market programs (ALMP) on the duration and outcome of job search in Norway. We use a comprehensive simultaneous equations model accounting for i) the duration of unemployment spells; ii) their outcomes, iii) subsequent employment stability; and iv) the earnings level associated with the first job. We find that time invested in job search pays off in form of higher earnings once a job match is formed. ALMP raises the probability of eventually finding a job as well as expected earnings, but at the cost of lengthening job search.

Cash-on-Hand and the Duration of Job Search: Quasi-Experimental Evidence from Norway.

We identify the causal effect of lump-sum severance payments on non-employment duration in Norway by exploiting a discontinuity in eligibility at age 50. We find that a severance payment worth 1.2 months' earnings at the median lowers the fraction re-employed after a year by six percentage points. Data on household wealth enable us to verify that the effect is decreasing in prior wealth, which supports the view that the severance pay effect should be interpreted as evidence of liquidity constraints. Finding liquidity constraints in Norway, despite its equitable wealth distribution and generous welfare state, means they are likely to exist also in other countries.

Cash-on-Hand and the Duration of Job Search: Quasi-Experimental Evidence from Norway

We identify the causal effect of lump-sum severance payments on non-employment duration in Norway by exploiting a discontinuity in eligibility at age 50. We find that a severance payment worth 1.2 months' earnings at the median lowers the fraction re-employed after a year by six percentage points. Data on household wealth enable us to verify that the effect is decreasing in prior wealth, which supports the view that the severance pay effect should be interpreted as evidence of liquidity constraints. Finding liquidity constraints in Norway, despite its equitable wealth distribution and generous welfare state, means they are likely to exist also in other countries.

Cash-on-Hand and the Duration of Job Search: Quasi-Experimental Evidence from Norway

Cash-on-Hand and the Duration of Job Search: Quasi-Experimental Evidence from Norway

Life-cycle patterns in male/female differences in job search

We investigate whether women search longer for a job than men and whether these differences change over the life cycle. Our empirical analysis exploits German register data on highly attached displaced workers. We apply duration models to analyze gender differences in job search taking into account observed and unobserved worker heterogeneity and censoring. Simple survival functions show that displaced women take longer to find a new job than comparable men. Disaggregation by age groups reveals that these differences are driven by differential behavior of women in their prime-childbearing years. There is no significant difference in job search duration among the very young and older workers. These differential outcomes remain even after we control for differences in human capital and when unobserved heterogeneity is incorporated into the model.

Life-Cycle Patterns in Male/Female Differences in Job Search

We investigate whether women search longer for a job than men and whether these differences change over the life cycle. Our empirical analysis exploits German register data on highly attached displaced workers. We apply duration models to analyze gender differences in job search taking into account observed and unobserved worker heterogeneity and censoring. Simple survival functions show that displaced women take longer to find a new job than comparable men. Disaggregation by age groups reveals that these differences are driven by differential behavior of prime age women. There is no significant difference in job search duration among the very young and older workers. These differential outcomes remain even after we control for differences in human capital, and when time dependence and unobserved heterogeneity are incorporated into the model.

How do extended benefits affect unemployment duration? A regression discontinuity approach

This paper studies a targeted program that extends the maximum duration of unemployment benefits from 30 weeks to 209 weeks in Austria. Sharp discontinuities in treatment assignment at age 50 and at the border between eligible regions and control regions identify the effect of extended benefits on unemployment duration. Results indicate that the duration of job search is prolonged by at least 0.09 weeks per additional week of benefits among men, whereas unemployment duration increases by at least 0.32 weeks per additional week of benefits for women. This finding is consistent with a lower early retirement age applying to women.

How Do Extended Benefits Affect Unemployment Duration? A Regression Discontinuity Approach

This paper studies a program that extends the maximum duration of unemployment benefits from 30 weeks to 209 weeks. Interestingly, this program is targeted to individuals aged 50 years or older, living in certain eligible regions in Austria. In the evaluation, I use sharp discontinuities in treatment assignment at age 50 and at the border between eligible regions and control regions to identify the effect of extended benefits on unemployment duration. Results indicate that the duration of job search is prolonged by at least .09 weeks per additional week of benefits among men, whereas unemployment duration increases by at least .32 weeks per additional week of benefits among women. The salient differences between men and women are consistent with the lower minimum age for early retirement applying to women.

Returns to Educational Performance at Entry into the Italian Labour Market

This paper studies whether a better educational performance enhances the chances of success at entry into the Italian labour market. Two indicators of educational performance are considered: the final grades in the diploma achieved and the speed with which a given educational qualification was completed. It is argued that the Italian educational system is highly standardized, in terms of the curricula and the examination system. Thus, it provides employers with information that can be used when making decisions about whom to employ. Therefore, educational performance should be rewarded by employers. At a theoretical level, a queuing model of the functioning of the labour market is specified and the need to distinguish the processes that lead to dependent employment and self-employment is highlighted. The empirical analysis is based on the Italian Household Longitudinal Survey and consists of an event-history analysis of the duration of first job search and a regression-type analysis of the prestige score of the first job. The results suggest that (a) individual educational performance increases the chances of success at entry into the labour market, (b) the importance of educational performance is greater in the youngest cohort of school-leavers

Labour Market Performance of Tertiary Education Graduates in Vietnam

The objective of this study is to evaluate the external efficiency of higher educa-tion in Vietnam as preparation for the labour market. The data were obtained fromthe Higher Education Tracer Study, implemented by the Ministry of Labour Inva-lids and Social Affairs (MOLISA) as part of the World Bank-Vietnam EducationFinancing Sector Study (VEFSS). The sampling framework was designed to en-sure representation by region and institutional specialization. From lists provided,there were names for 42,754 graduates from 60 institutions. A representativesample of 1,829 graduates was followed up for incorporation in this study. Threetopics are identified for analysis: the relationship between earnings, education andsupplementary training; duration of job search; and incidence of employment/unemployment.

Unknown wage offer distribution and job search duration

If job searchers do not know the wage offer distribution they are facing, they might take the wage structure in their last firm as a prior. Doing so, reservation wages will be biased which will also bias unemployment duration. Using data for Austrian workers it is shown that workers seem to have good knowledge of expected mean wages, but less so for higher moments of the wage offer distribution.

The determinants of unemployment and jobsearch duration in The Netherlands

This study investigates the determinants of individual unemployment and jobsearch duration and the size and direction of duration dependence in a proportional hazard model. New insights into the shape of the time dependence of unemployment duration are obtained using a semi-parametric baseline hazard specification in combination with a parametric (gamma) heterogeneity correction or with a semi-parametric heterogeneity correction. Registration data on unemployed individuals in The Netherlands in the period April 1987–May 1987 are used. For both sexes, the hazard rate quickly rises during the first five months, but then after the fifth month rapidly declines until the end of the first year of unemployment, not showing any clear tendency thereafter. Commonly used parametric specifications for the baseline hazard prove to be too restrictive. For men we discuss the influences of the regressors.

MATCHING EMPLOYERS AND WORKERS: AN EMPIRICAL ANALYSIS ON THE EFFECTIVENESS OF SEARCH

The authors analyze the effectiveness of three different search channels: advertisements, public employment office, and informal channels. Their approach integrates search on both sides of the labor market. For each search channel, the authors specify matching functions in which the number of vacancies and the number of searchers in that market are input variables. The effectiveness of the search channels can be assessed on the basis of the estimated parameters of the matching functions. The matching functions are estimated using market level data and micro data on vacancy duration and job search duration. Copyright 1994 by Royal Economic Society.