Choice among different job search channels: evidence from Russian labor market

How do people look for a job in Russia? Are their search methods random or dependant on any observable factors? How do search methods differ across social and demographic groups? Based on Goskomstat’s Economic Activity Surveys for 1992- 2001 and Russian Longitudinal Monitoring Survey (RLMS) for 1994-2001, the paper analyses different types of job search strategies, factors that influence search intensity and the choice of a search channel, and impact of a chosen strategy on employment probability. The author's argue that the findings may prove useful for developing active labour market programs, such as designing methodologies for accurate profiling mechanisms of the unemployed and, thus, increasing efficiency of formal intermediaries on the labor market.

The available job search channels are first listed, such as public and private employment agencies, friends’ and relatives’ help, direct contacts with possible employer. These are then analysed from the point of view of time and money costs, offered opportunities and suitability for different occupations.

Assuming that job seekers act rationally when choosing a search strategy, i. e. they chose the most effective search channels in terms of return/cost ratio, the authors test the following research hypotheses:

• available income and time are important determinants for the choice of a channel
• search channel depends on the type of job and professional qualifications of a job seeker
• duration of unemployment influences search effectiveness and costs
• characteristics of the local labor market are important for the choice and effectiveness of search channels

Using an econometric estimation that includes such variables as age, gender, marital status, education, nationality, employment history, and occupation, the authors find that

• resource constraints do not have a big impact on the choice of search channels, while expected returns (efficiency) do have such an effect, which implies that people act rationally when searching jobs
• informal social networks are most popular and public employment agencies are least popular with recently unemployed people, while mass media is least favored by the long-term unemployed
• an increase in unemployment rates in a local labour market leads to the increased use of public employment agencies by the unemployed
• job seekers who are currently employed clearly differ in the choice of channels from unemployed seekers

The authors conclude by noting that the obtained results are in line with other international studies.