The Impacts of Labor Market Policies on Job Search Behavior and Post-Unemployment Job Quality

Abstract

We examine empirically the impacts of labor market policies – in terms of unemployment insurance (UI) and active labor market programs (ALMP) – on the duration and outcome of job search and on the quality of a subsequent job. We find that time invested in job search tends to pay off in the form of higher earnings once a job match is formed. More generous UI raises expected unemployment duration, while improving the quality of the resultant job. Participation in ALMP raises the probability of finding a job and the level of expected earnings, but at the cost of lengthening job search.

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By Knut Røed, and Lars Westlie., Simen Gaure
Published Mar. 23, 2015 11:20 AM - Last modified Nov. 20, 2017 3:23 PM