FAIR seminar Rafael Lalive
Duration Dependence in the Job Finding Rate: Exploring the Role of Applications, Callbacks, and Job Offers
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Abstract:
Job finding chances decrease with the duration of unemployment. This paper probes the extent to which (i) job applications sent by job seekers, (ii) firms’ callback decision, and (iii) job offers can account for duration dependence. Our data from the Swiss unemployment register cover firms’ responses (callbacks and job offers) for every job application. We find that falling applications reduce chances to be interviewed, and firms' callback decisions amplify this trend. Falling applications also contribute to lower job offer rates, but firms' job offer decisions dampen this decline. These patterns are coherent with a statistical learning view of job search, in which firms learn about the potential match of job seekers through realized job search duration.