Job search, search intensity and labour market transitions : an empirical analysis

In this paper we present an empirical structural job search model with endogenously determined search intensity. The model describes both the behaviour of unemployed job searchers and on-the-job search. We use data on various indicators (or search channels) for the intensity of search, like the monthly number of applications, to study the influence of the intensity of search on labour market transitions. The estimation results give us insight in the effectiveness of search. The impact of the benefit level on search intensity of unemployed job searchers is quantified. Moreover, the estimation results are used to gain insight in the "discouraged worker" effect. The generalized residuals are studied to discuss the fit of the model.