RELATIVE EFFICIENCIES AND COMPARATIVE ADVANTAGES IN JOB SEARCH

A model of employed and unemployed job search is estimated from a pane l of new entrants into the labor force as well as prime-age workers. A fter investigating the relative efficiency of the two main search meth ods within a representative agent framework, I estimate the model unde r a specification that encompasses comparative advantages using the qu it/layoff distinction and pretransition earnings. Overall, the data in dicate that unemployed search is slightly more effective for younger w orkers and, particularly, for those with low earnings but significantl y less effective than employed search for mature workers.