Unemployment transitions in the mexican labour market and the role of job search channels

Abstract

This study examines the overall effects of a set of personal characteristics, search channels and financial variables on the probability of transitioning from unemployment to employment. Using the National Occupational and Employment Survey 2005-2015 (ENOE in Spanish). There seems to be a positive and strong correlation between being formally employed and transitioning to a formal employment in period t + 1. There is a “wait unemployment”, because those with lower levels of education experience more transitions relative to more educated individuals.There seems to be a presence of a “scarring effect” which is picked up when introducing the duration of weeks of job search in the estimation, and means that unemployment spells are positively associated with remaining unemployed. Finally, women seem to benefit more when using different types of search channels such as uploading or replying a job offer online and using newspapers or classified ads to get a job.