Job search and unemployment insurance: New evidence from time use data

• Published in: Journal of public economics Vol. 94; no. 3; pp. 298 - 307
• Main Authors: Krueger, Alan B., Mueller, Andreas
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.04.2010; Elsevier
• Series: Journal of Public Economics
• Subjects: Benefit plans; Business and economics; Comparative analysis; Economics; Ekonomi; Europe; Inequality; Job search; Modelling; Nationalekonomi; SAMHÄLLSVETENSKAP; SOCIAL SCIENCES; Time; Time use; U.S.A; Unemployment; Unemployment benefits; Unemployment insurance; Unemployment Unemployment insurance Job search Time use Unemployment benefits Inequality; Job search; Time use; Unemployment benefits; J65; J64; Unemployment insurance; Unemployment; Inequality
• ISSN: 0047-2727; 1879-2316; 1879-2316
• DOI: 10.1016/j.jpubeco.2009.12.001

This paper provides new evidence on job search intensity of the unemployed in the U.S., modeling job search intensity as time allocated to job search activities. The major findings are: 1) the average U.S. unemployed worker devotes about 41 min to job search on weekdays, which is substantially more than their European counterparts; 2) workers who expect to be recalled by their previous employer search substantially less than the average unemployed worker; 3) across the 50 states and D.C., job search is inversely related to the generosity of unemployment benefits, with an elasticity between −1.6 and −2.2; 4) job search intensity for those eligible for Unemployment Insurance (UI) increases prior to benefit exhaustion; and 5) time devoted to job search is fairly constant regardless of unemployment duration for those who are ineligible for UI.