Job Search, Job Findings, and the Role of Unemployment Insurance History by Similan Rujiwattanapong

Join us for this weeks Macroeconomics Research Seminar, Summer Term 2024.

Similan Rujiwattanapong, from the Faculty of Political Science and Economics, Waseda University, will present this weeks Macroeconomics seminar on Job Search, Job Findings, and the Role of Unemployment Insurance History.

Abstract

Standard search theory predicts that job search intensity increases with the relative gain from searching and leads to a higher probability of finding a job. However, this paper presents empirical findings that contradict these predictions when workers are categorized by their unemployment insurance (UI) history. Unemployed workers who currently or previously received UI search harder than those who have never used UI during their unemployment spells. Surprisingly, despite their increased effort, those with UI history have a lower probability of finding a job. To explain these findings, the paper introduces inefficient job search into a standard stochastic equilibrium search-and-matching model with endogenous search intensity. This addition yields three key results: (1) aggregate search intensity becomes acyclical, potentially leading to an overestimation of the decline in matching efficiency, (2) it dampens labor market fluctuations and the general equilibrium effects of UI extensions, and (3) it increases the persistence and duration of unemployment.

This seminar will be held on campus in 5B.126 at 1.00pm on Thursday 20 June 2024. This event is open to all levels of study and is also open to the public. To register your place, please contact the seminar organisers.

This event is part of the Macroeconomics Research Seminar Series.