UNEMPLOYMENT BENEFITS AND SEARCH EFFORT IN THE UK LABOR-MARKET

The impact that receipt of unemployment benefit has on the job search effort is investigated. Utilizing data drawn from the 1984 Labour Force Survey, reduced-form search effort equations are estimated conditional on the decision to seek work. After controlling for potential selectivity bias, personal characteristics and demand conditions, those claiming benefit are shown to search more extensively than non-claimants. Benefit claimants maintain a closer attachment to the labour market and appear more able to prolong search effort. Receipt of unemployment benefit increases the likelihood of contacting a job vacancy. -Author