This paper studies the dynamics of job search using a novel administrative database on job search activities and outcomes of Swiss unemployed. We leverage on the panel structure of our data to control for the inherent dynamic selection process affecting our sample, to measure net- of-dynamic-selection duration dependence in the search effort provided by job seekers (i.e. the monthly number of applications) and firm’s responses to applications (i.e. the probability of inviting job seekers to a job interview). We quantify the relative contribution of those two channels of duration dependence to the overall decrease in the number of job interviews and job offer rate, in a decomposition exercise. Our results show that both job-seekers’ effort and firm’s response to applications decrease steadily over time, also when controlling for individuals’ heterogeneity. The combination of those negative trends leads to a large decrease in the number of job interviews and job offer rate over time. Approximately half of the empirical decrease in the job offer rate is attributable to diminishing search effort, while the remaining half is due to changes in recruiters’ behavior. Were both channels of duration dependence to be shut down, the job offer rate faced by the unemployed individuals would essentially be flat.

Date: Thursday, June 2^nd

Time: 4.30 to 6 pm (CET)

Location: building D4, ground floor, room D4.0.019