FONDATION MAISON DU BRÉSIL
XXXIX Cycle de Conférences
18 Juillet 2018 – Salle de réunion – 20H00
What are the effects of online job search on the labor market?
Thiago SCARELLI – Master’s student in the program of Analysis & Policy in Economics at the Paris School of Economics (PSE) / École des Hautes-Études en Sciences-Sociales (EHESS). Graduated with bachelor’s degrees in Journalism and Economics from Universidade de São Paulo (USP).
The canonical job search model in Labor Economics predicts that the emergence of online job boards should decrease the costs involved in looking for a job and improve the quality of the matching between firms and workers. Reviewing the empirical literature, we see that papers from the 2000s do not fint a signiticant effect: unemployment duration, matching quality and unemployment rate did not improve with the use of online search tools. However, more recent research, which use more rigorous methods, confirm the hypothesis that online tools can reduce friction in the labor market. We discuss the differences in those results and conclude with a comment on the limitations and opportunities of online job search in the near future, noting that the key question to be addressed is how to reduce the cognitive costs in searching over large lists of options.