Institute of Labor Economics (IZA)
Schaumburg-Lippe Str. 5-9
53113 Bonn, Germany
Institutional Affiliations: Institute of Labor Economics (IZA), IAB and IAB
NBER Working Papers and Publications
|April 2020||Evidence on Job Search Models from a Survey of Unemployed Workers in Germany|
with Stefano DellaVigna, Jörg Heining, Johannes F. Schmieder: w27037
The job finding rate of Unemployment Insurance (UI) recipients declines in the initial months of unemployment and then exhibits a spike at the benefit exhaustion point. A range of theoretical explanations have been proposed, but those are hard to disentangle using data on job finding alone. To better understand the underlying mechanisms, we conducted a large text-message-based survey of unemployed workers in Germany. We surveyed 6,800 UI recipients twice a week for 4 months about their job search effort. The panel structure allows us to observe how search effort evolves within individual over the unemployment spell. We provide three key facts: 1) search effort is flat early on in the UI spell, 2) search effort exhibits an increase up to UI exhaustion and a decrease thereafter, 3) UI recipi...