Liquidity constraints, unemployed job search and labour market outcomes

Gerards, Ruud, and Welters, Riccardo (2019) Liquidity constraints, unemployed job search and labour market outcomes. Oxford Bulletin of Economics and Statistics.

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Liquidity constraints prompt the unemployed to intensify their job search, but does that produce better labour market outcomes? Using longitudinal Australian data, we test the effect of objective proxy indicators of liquidity constraints on job search and concomitant labour market outcomes. We find that liquidity constraints, specifically their severe form 'hardship', intensify job search without improving short-run employment outcomes or objective job quality (if a job is secured), whereas subjective job quality outcomes are worse. Moreover, we find evidence that the quit intention is higher and the concomitant medium-run employment stability is lower for those who found jobs facing hardship.

Item ID: 61074
Item Type: Article (Research - C1)
ISSN: 1468-0084
Date Deposited: 27 Nov 2019 07:33
FoR Codes: 38 ECONOMICS > 3801 Applied economics > 380111 Labour economics @ 100%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9102 Microeconomics > 910208 Micro Labour Market Issues @ 100%
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