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Title: Essays on the Choice of Job Search Method
Resulting in 1 citation.
1. Lipton, Brandy J.
Essays on the Choice of Job Search Method
Ph.D. Dissertation, Northwestern University, June 2012
Cohort(s): NLSY79
Publisher: ProQuest Dissertations & Theses (PQDT)
Keyword(s): Armed Forces Qualifications Test (AFQT); Job Search; Modeling, Fixed Effects; Social Contacts/Social Network; Wage Dynamics; Wages

Permission to reprint the abstract has not been received from the publisher.

This dissertation explores the determinants of job search method choice theoretically and empirically. The first two chapters focus on the choice between networking and formal methods of job search while the third chapter explores how business cycle conditions impact search method use. Most labor models predict that networking or the use of personal contacts to find a job will be associated with wage premiums and shorter unemployment durations. While empirical studies have confirmed that networkers find jobs faster, most have not confirmed the theoretically predicted wage premium. In fact, some find evidence of a wage penalty. There is scant theory to explain these findings. Chapter 1 develops a general equilibrium search model with worker heterogeneity that allows workers and firms to make optimal choices about how to search for matches. The model predicts that since low ability job seekers may use personal contacts intensively, networked jobs may offer lower wages on average even though networkers earn a wage premium conditional on skills. Further, whether the use of personal contacts is correlated with wage premiums or penalties depends on employer type. Chapter 2 presents empirical results supportive of the model developed in Chapter 1. I find evidence that networkers are negatively selected in the U.S. labor market using panel data from the National Longitudinal Survey of Youth (NLSY), and that the use of personal contacts is positively associated with wages. Furthermore, networking appears to impact labor market outcomes differently for different occupational groups. Chapter 3 presents evidence that search method use varies over the business cycle; the use of some methods is cyclical while the use of others is countercyclical.
Bibliography Citation
Lipton, Brandy J. Essays on the Choice of Job Search Method. Ph.D. Dissertation, Northwestern University, June 2012.