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Title: The Demand for Labor Market Information
Resulting in 1 citation.
1. Kahn, Lawrence M.
Low, Stuart A.
The Demand for Labor Market Information
Southern Economic Journal 56,4 (April 1990): 1044-1058.
Cohort(s): NLSY79
Publisher: Southern Economic Association
Keyword(s): Behavior; Job Search; Unemployment Insurance; Wages

A model of the job seeker's demand for the labor market information provided by intermediaries is developed and tested. The value of using such indirect search methods is that one can increase knowledge about particular firms' potential offers. The model predicts that several factors raise the likelihood of using indirect search methods: (1) a lower stock of firm-specific information; (2) a lower discount rate; (3) greater unemployment insurance (UI) coverage; and (4) higher variance of one's wage offer distribution. These predictions are tested on the 1981 wave of the NLSY cohort aged 14-21 in 1979. Empirical support is found for the impact of information stock, UI coverage, and wage offer variance. The results for UI illustrate that UI affects job search behavior, in addition to its macroeconomic role. The effects of offer variance and information stock suggest some mechanisms that limit the amount of wage inequality unexplained by productivity differences. [ABI/INFORM]
Bibliography Citation
Kahn, Lawrence M. and Stuart A. Low. "The Demand for Labor Market Information." Southern Economic Journal 56,4 (April 1990): 1044-1058.