Three Essays on Labor Market Outcomes

Abstract

The three chapters in this dissertation look at different aspects of the labor market and its players. The first chapter estimates the impact of using the internet for job search on job match quality. Using both the semi-parametric Meyer (1990) model and the non-parametric Hausman Woutersen (2014) hazard model, the paper finds that exit rate from employment is at least 28% lower when internet is used as a job search tool. The second chapter looks at the effect of past unemployment on future wages. It is believed that employers may use past unemployment as a signal of low productivity. In this situation workers with a history of unemployment may receive lower wages. The paper uses the Machado Mata (2005) quantile decomposition technique to decompose the wage difference into differences due to characteristics and differences due to rewards. Results indicate that workers with an unemployment spell of more than three months receive at least 12% lower wages and that more than 40% of this wage difference can be attributed to the lower rewards received by the previously unemployed.. The last chapter focuses on human capital formation and looks at some of the reasons behind the low levels of schooling India. Using the Indian Household Development Survey (2005), the paper finds that income continues to be an important factor behind the low level of primary school enrollment. On average, poor students have at least 3% lower enrollment rates, when compared to similar skilled non-poor students.