Vacancy Referrals,Job Search,and the Duration of Unemployment: A Randomized Experiment

One goal of the Public Employment Service is to facilitate matching between unemployed job‐seekers and job vacancies; another goal is to monitor job search so as to bring search efforts among the unemployed in line with search requirements. The referral of job‐seekers to vacancies is one instrument used for these purposes. We report results from a randomized Swedish experiment where the outcome of referrals is examined. To what extent do unemployed individuals actually apply for the jobs they are referred to? Does information to job‐seekers about increased monitoring affect the probability of applying and the probability of leaving unemployment? The experiment indicates that a relatively large fraction (one‐third) of the referrals do not result in job applications. Information about intensified monitoring causes an increase in the probability of job application, especially among young people. However, we find no significant impact on the duration of unemployment.     

Time Preferences and Job Search: Evidence from France

Abstract. Increasing impatience reduces search efforts of unemployed job seekers and therefore decreases the exit rate from unemployment. Also, impatience reduces reservation wage and increases the exit rate. To determine the overall effect of impatience on the exit rate from unemployment, we distinguish between exponential and hyperbolic time preferences. Search effort dominates the reservation wage and decreases the exit rate from unemployment if individuals have hyperbolic, rather than exponential, preferences. Using the French sample of the European Household Panel Survey, we found that search effort has a strong effect on the duration of unemployment, whereas the reservation wage is not significant. This result shows that the job seekers have hyperbolic preferences. Hyperbolic preferences affect problems associated with job search and policies aimed at reducing unemployment.     

Recruitment on the Net: How Do Organizational Web Site Characteristics Influence Applicant Attraction?

The use of organizational web sites for recruitment has become increasingly common. Despite their widespread growth, however, little is known about how these web sites influence recruitment outcomes. In the current paper, we present a model that explicates how job seekers interact with and respond to web site characteristics to predict various job seeker attitudes and behaviors. We suggest that job seekers are initially affected by the facade of a web site, comprised of the web site’s aesthetic and playfulness features. Coupled with system features of the web site, these initial affective reactions then influence perceptions of the usability of the web site. Perceptions of usability and affective reactions work through two key mediating constructs, job seeker search behavior and web site attitude, to ultimately predict applicant attraction. Throughout the paper we present a series of testable propositions that should serve to guide future research.     

Informal Referrals,Employment, and Wages: Seeking Causal Relationships

Employers and job seekers rely extensively on informal referrals to fill vacancies or to find a job. The widespread use of job contacts has been largely associated with labor outcomes, such as finding a job or even affecting wages. This paper explores whether the use of informal referrals on the job search process affects labor market outcomes of Colombian urban workers. Results indicate that informal referrals are slightly more successful than other job search strategies in term of job seeker's placement. However, referred workers earn in average less than their non‐referred counterparts. Yet, this is only true in formal‐sector positions.     

Analysis of Job Satisfaction: The Case of Japanese Private Companies

The scope of economic theory expands if we consider that working provides people with both pecuniary compensation for its disutility and job satisfaction. This study empirically analyzes the job satisfaction of employees in Japanese private companies using a multivariate ordered probit model. In particular, we examine the effects of a big economic shock, such as the Lehman shock, on job satisfaction, as well as the effects of differences in gender and employment status. We estimate the model using a Bayesian analysis and a multivariate ordered probit model using the Markov chain Monte Carlo method. We show that non‐pecuniary aspects of jobs play an important role in job satisfaction.     

Job Search: A Multidisciplinary Review and Research Agenda

Scholarly interest in job search has grown significantly over the years and can be located in diverse research streams: namely, economics, sociology and industrial/organizational psychology. This paper reviews these bodies of literature and makes a case for integration by proposing a multidisciplinary approach to understanding job‐seeking behaviors. To this end, the paper categorizes the respective literatures on the basis of common themes located in a conceptual multidisciplinary model of job search behaviors and outcomes. This model provides a more focused understanding of the job search literature and how it has developed in the related disciplines. Based on the review and conceptual model presented, the paper draws attention to several key areas for future research to advance the field further.     

Decoding the Signal Effects of Job Candidate Attraction to Corporate Social Practices

This article seeks to go beyond the implied assumption from previous research that job candidate attraction to corporate social practices is equivalent across individuals. To this end, we propose a framework for categorizing individuals' attraction to different corporate social performance profiles. Our framework is grounded in relational models theory and Mitroff's model of managers' “ideal organizations.” An inductive approach was used to elaborate upon the model and assess the extent to which candidates preferences vary. Data were collected from prospective job seekers regarding their attraction to social practices that benefit or harm various stakeholders, and these responses were used to develop profiles of job candidates' attraction to distinct profiles of organizations' social practices. The results provide a guide for managers who wish to improve the likelihood that an organization's social practices reflect what is best about its culture.     

SEARCH INTENSITY,DIRECTED SEARCH,AND THE WAGE DISTRIBUTION

We propose a search equilibrium model in which homogeneous firms post wages along with a vacancy to attract job seekers while homogeneous unemployed workers invest in costly job seeking. The key innovation relies on the organization of the search market and the search behavior of the job seekers. The search market is continuously segmented by wage level, individuals can spread their search investment over the different submarkets, and search intensity has marginal decreasing returns in each submarket. We demonstrate the existence of a nondegenerate equilibrium wage distribution. The density of this wage distribution is increasing at low wages and decreasing at high wages. The distribution can be right‐tailed, and, under additional restrictions, is hump‐shaped. Our results are illustrated by an example generating a Beta wage distribution.     

Job insecurity in temporary versus permanent workers: Associations with attitudes, well-being, and behaviour

Recent research suggests that the relationship between job insecurity and psychological outcomes is more negative among permanent compared with temporary workers. We investigate possible interaction effects between job insecurity and type of contract (temporary versus permanent) for various psychological outcomes (job satisfaction, organizational commitment, life satisfaction, and self-rated performance), some of which have received little attention. We aim to explain these interaction effects, while taking into account the heterogeneous nature of temporary workers in terms of tenure, employment prospects, and wish to do temporary employment. We argue that permanent workers expect higher levels of job security; job insecurity breaches permanent workers' but not temporary workers' expectations. This may relate to unfavourable outcomes. Similarly, the heterogeneous nature of temporary workers may relate to job security expectations and thus to reactions to job insecurity. This study was conducted on a sample of 477 temporary and permanent workers from various occupational sectors in Belgium. The results suggested that the interaction effect between job insecurity and contract type may be limited to job satisfaction and organizational commitment. Furthermore, permanent workers had higher expectations about job security. Breach of these expectations furthermore mediated the relationship between job insecurity and all outcomes, except for self-rated performance. However, the heterogeneity indicators were found to be unrelated to job security expectations.     

DOES THE ILO DEFINITION CAPTURE ALL UNEMPLOYMENT?

The labour market status of many nonworking persons is at the boundary between unemployment and inactivity. Like the unemployed, they seek and are available for work; unlike them, their last search action was not recent enough to meet the International Labour Office definition of unemployment. In this paper we examine by nonparametric tests how the transition probabilities of these out‐of‐the‐labour‐force job seekers differ from those of the unemployed as well as the other nonparticipants. First, using data from the European Community Household Panel, we show that in most EU countries these job seekers constitute a distinct labour market state. Second, we rely on information available only in the Italian Labour Force Survey to derive a measure of search intensity that we use to break down the out‐of‐the‐labour‐force job seekers. On the basis of their transition probabilities, the most active are indistinguishable from the unemployed. (JEL: J64, J22, R23)     

The Differential Earnings and Income Effects of Involuntary Job Loss on Workers with Disabilities — Evidence from Sweden

People with disabilities are consistently found to face considerable difficulties in the labour market. In this study we investigated whether their earnings and income trajectories are more adversely affected in case of involuntary job loss. Earnings of those with and without disabilities began to diverge already several years prior to job loss because of larger incidence of sickness. Following job loss much more job losers with disabilities became disability retirees resulting in a considerable and seemingly permanent earnings differential. However, larger uptake of public social insurances among job losers with disabilities resulted in a much smaller income differential.     

Active Labour Market Programmes,Job Search and Job Finding in Denmark

This paper investigates whether the probability to search for a job and search intensity increase as the start of an Active Labour Market Programme (ALMP) approaches. Further, it investigates whether job search is correlated with job finding. Although previous studies have shown that the chance of job finding increases as the start of an ALMP approaches, it remains an open question what causes this ‘threat effect’. Results show that job search increases as programme start approaches and that there is a positive correlation between job search and job finding. The threat effect can therefore at least partly be attributed to increased job search.     

Education,Mobility and Employers’ Monopsony Power: A Search‐theoretic Analysis

Abstract. We analyse the efficiency of schooling choices in a wage‐posting search equilibrium model with on‐the‐job search. The workers have multidimensional skills and the search market is segmented by technology. Education determines the scope — or adaptability— of individual skills. Individuals obtain schooling to leave unemployment more quickly and to climb the wage ladder rapidly through job‐to‐job mobility — that is, to speed up job shopping. Education reduces firms’ monopsony power in the wage determination by improving workers’ mobility. As a result, the wage distribution shifts rightward with aggregate schooling. However, the ratio of vacant jobs to job seekers also falls in each sector. Either one or the other externality may dominate, implying, respectively, under‐ or over‐education. A combination of minimum wage and schooling fee can decentralize the efficient allocation.     

ESTIMATING THE STOCK‐FLOW MATCHING MODEL USING MICRO DATA

We estimate the stock‐flow matching model using micro‐level data from a well‐defined labor market. Using a dataset of complete labor‐market histories for both sides of the market, we estimate hazard functions for job‐seekers and vacancies. We find that the stock of new vacancies has a significant positive impact on the job‐seeker hazard, over and above that of the total stock of vacancies. There is an even stronger robust result for vacancy hazards. Thus we find evidence in favor of stock‐flow matching, even when controlling for unobserved search heterogeneity and stratifying into submarkets defined by location and occupation.     

DISTANCE TO RETIREMENT AND OLDER WORKERS‘ EMPLOYMENT: THE CASE FOR DELAYING THE RETIREMENT AGE

This paper presents empirical evidence and a theoretical foundation in favor of the view that the retirement age decision affects older workers' employment prior to retirement. To the extent that there are search frictions on the labor market, the return on jobs is determined by their expected duration: The time to retirement is then key to understanding older workers' employment. Countries with a retirement age of 60 are indeed characterized by lower employment rates for workers aged 55–59. Based on the French Labor Force Survey, we show that the likelihood of employment is significantly affected by the distance to retirement, in addition to age and other relevant variables. We then extend McCall's job search model by explicitly integrating life‐cycle features with the retirement decision. Using simulations, we show that the distance effect in interaction with the generosity of unemployment benefits and the depressed demand for older workers explains the low rate of employment just before the eligibility age for the Social Security pension. Finally, we show that implementing actuarially fair schemes not only extends the retirement age, but also encourages a more intensive job search by older unemployed workers. (JEL: J22, J26, H55)     

Beyond demand and control: The contribution of organizational risk factors in assessing the psychological well-being of health care employees

Abstract

The job demand–control(–support) model is frequently used as a theoretical framework in studies on determinants of psychological well-being. Consequently, these studies are confined to the impact of job characteristics on worker outcomes. In the present study the relation between work conditions and outcomes (job satisfaction, emotional exhaustion, psychological distress, and somatic complaints) is examined from a broader organizational perspective. This paper reports on an analysis that examines both the unique and the additional contribution of organizational characteristics to well-being indicators, beyond those attributed to job characteristics. A total of 706 care staff from three public residential institutions for people with mental or physical disabilities in the Netherlands took part in this research. To assess organizational risk factors a measurement instrument was developed, the organizational Risk Factors Questionnaire (ORFQ), based on the safety-critical factors of the Tripod accident causation model. Factor analyses and reliability testing resulted in a 52-item scale consisting of six reliable sub-scales: staffing resources, communication, social hindrance, training opportunities, job skills, and material resources. These organizational risk factors explained important parts of the variance in each of the outcome measures, beyond that accounted for by demographic variables and job demand–control–support (JDCS) measures. Communication and training opportunities were of central importance to carers’ job satisfaction. Social hindrance, job skills, and material resources explained a substantial amount of unique variance on the negative outcomes investigated.     

Toward ‘mental accessibility’: changing the mental obstacles that future Human Resource Management practitioners have about the employment of people with disabilities

This paper presents the results of a participatory research project undertaken with Hungarian MSc students specializing in Human Resource Management and Development about the employment of people with disabilities. The unemployment rate for people with disabilities is very high in Hungary and HR practitioners have a key role in maintaining or reducing barriers to their employment. Following the tradition of critical pedagogy, the aim of the research project was twofold. Firstly, we aimed to reveal the mental patterns, attitudes and beliefs of future HR practitioners to the employment of people with disabilities (which might be root causes of domination, discrimination or exploitation). Secondly, through using a radical methodological approach – cooperative inquiry – the researchers wished to emancipate students and challenge their frozen beliefs about disability as well as the positivist value system which usually dominates business education. The main result of the research project was to challenge the medical approach to disability which formerly dominated the belief systems of our student co-researchers, thereby engendering a more critical worldview.     

组织公正、雇佣关系与员工工作态度——基于广东民营企业的经验研究

分析员工层面雇佣关系的内涵及其在组织公正与员工工作态度关系中所起的中介作用对我国民营企业人力资源管理有重要的现实意义.本文在文献述评的基础上提出了一系列假设,并通过对675位广东民营企业员工问卷的实证分析检验了假设.研究发现,领导一部属交换与员工工作态度的相关性最显著.并在人际公正、信息公正与员工工作态度关系中起完全中介作用;心理契约违背与员工工作态度显著负相关,并在程序公正、分配公正与员工工作态度关系中起部分中介作用.研究表明,民营企业不仅要通过创建公正的分配环境来提高员工的工作态度,而且要善于构建能得到员工认同的雇佣关系,尤其是高质量的员工与直接领导之间的关系,提高员工的工作满意度和组织承诺.     

An International Comparative Study on Job Mobility

Abstract. Job mobility refers to the movement of people between jobs with different employers. It is an important means of adjustment in the labour market because it facilitates structural changes in the economy. This paper presents the results of a comparative study on job mobility in 6 countries: France, Japan, the Netherlands, Sweden, United Kingdom and the USA. Some of these countries use both labour force surveys and establishment surveys to gather information on job mobility, while other countries only use one of them. The paper uses information from both types of survey held in the seventies and the eighties and describes the developments and the structure of job mobility in the 6 countries. An empirical cross-country analysis shows that job mobility is positively correlated with the growth of employment and negatively correlated with the unemployment rate. There appear to be hardly any structural differences in job mobility between the USA, Sweden, France and the UK. Job mobility in the Netherlands is structurally lower than in the other countries, while job mobility in Japan is structurally lower than in the Netherlands.     

The Public–Private Job Satisfaction Differential in Italy

Abstract. This paper uses Italian survey data for 1995 to study the differences in satisfaction for six non‐pecuniary job attributes between public and private sector workers. Results indicate that public employees differ from private employees in the way they evaluate satisfaction with job security, consideration by colleagues, and safety and health job features, whereas there are no differences in their assessment of satisfaction with effort levels and interest for the job. In particular, we find that the premium for public employees is quantitatively higher, especially in the case of satisfaction with employment losses. Moreover, there are significant differences in the determinants of satisfaction across sectors.