Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2021:1: Job search during the covid-19 crisis.

Lena Hensvik (), Thomas Le Barbanchon () and Roland Rathelot ()
Additional contact information
Lena Hensvik: Uppsala University, Postal: Uppsala University, Sweden
Thomas Le Barbanchon: Bocconi University, Postal: Bocconi University, CEPR, IGIER, IZA and J-PAL,
Roland Rathelot: University of Warwick, Postal: University of Warwick,CAGE, CEPR and J-PAL

Abstract: This paper measures the job-search responses to the COVID-19 pandemic using realtime data on vacancy postings and job ad views on Sweden’s largest online job board. First, new vacancy postings drop by 40%, similar to the US. Second, job seekers respond by searching less intensively, to the extent that effective labour market tightness increases during the first three months after the COVID outbreak. Third, they redirect their search towards less severely hit occupations, beyond what changes in vacancies would predict. Overall, these job search responses have the potential to amplify the labour demand shock.

Keywords: coronavirus; search intensity; search direction; labour demand shock; job vacancies; online job board

JEL-codes: E24; J21; J22; J23; J62; J63; J64

38 pages, January 22, 2021

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