Job Search, Search Intensity, and Labor 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 seekers and on-the-job search. We use data on various indicators for the intensity of search 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 the search intensity of unemployed job seekers is quantified. Moreover, the estimation results are used to gain insight in the ‘discouraged worker’ effect.