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Internet Job Search and Unemployment Durations
Peter Kuhn and Mikal Skuterud
American Economic Review. Feb 2004, Vol. 94, No. 1: Pages 218-232

Internet Job Search and Unemployment Durations

Peter Kuhn1,

1Department of Economics, University of California, Santa Barbara, CA 93106.

Mikal Skuterud2

2Family and Labour Studies Division, Statistics Canada, 24th Floor, Coats Building, Tunney's Pasture, Ottawa, ON, Canada, K1A 0T6.

Using the December 1998 and August 2000 CPS Computer and Internet Supplements matched with subsequent CPS files, we ask which types of unemployed workers looked for work on line and whether Internet searchers became reemployed more quickly. In our data, Internet searchers have observed characteristics that are typically associated with shorter unemployment spells, and do spend less time unemployed. This unemployment differential is however eliminated and in some cases reversed when we hold observable characteristics constant. We conclude that either Internet job search is ineffective in reducing unemployment durations, or Internet job searchers are negatively selected on unobservables.