Research
Working Papers
Wage Expectations and Job Search (with Steffen Altmann, Robert Mahlstedt, Alexander Sebald, Sonja Settele and Johannes Wohlfart)
Working Paper
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We conduct a field experiment to study how the subjective wage expectations of unemployed workers shape their job search behavior and re-employment prospects. Using matched survey-administrative data from more than 9,000 job seekers in Denmark, we first document that job seekers anchor their wage expectations to their pre-unemployment wages by more than is objectively justified. A random half of the sample receive information about the objective wage potential of comparable workers. Treated individuals update their own wage expectations towards the provided signal and adjust their job search strategies. Ultimately, the treatment increases re-employment rates among both previously over-optimistic and previously overly pessimistic individuals, albeit through different channels. Initially optimistic individuals respond by lowering their reservation wages and increasing their search effort. Initially pessimistic individuals raise their reservation wages and shift their job search toward vacancies closer to home. Consistent with the presence of spatial search frictions---which we show are largely unanticipated by job seekers---narrowing the geographic scope of search enables treated individuals to find employment more quickly.Which Occupations Do Unemployed Workers Target? Insights from Online Job Search Profiles (with Steffen Altmann, Robert Mahlstedt and Alexander Sebald)
IZA Discussion Paper
SSRN
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Our study investigates the occupational job search strategies of more than 60,000 unemployed workers in Denmark. We find substantial heterogeneity in how job seekers allocate their search activities across dierent occupations, and this heterogeneity persists throughout the duration of their unemployment spell. Notably, a considerable proportion of unemployed workers (approximately 30%) search in occupations where they lack relevant experiences. Those aiming for jobs unrelated to their prior experience tend to exhibit the lowest levels of employment and earnings, despite the fact that they target occupations with generally favorable conditions.Work in Progress
Misguided Job Search (single-authored)