This article examines the job-search methods of jobless workers and emphasizes sample selectivity in choice of job-search strategies (especially use of public employment agencies). Longitudinal data from the Labour Force Survey of Canada for 1981, 1983, and 1986 indicate that job-search methods change with the business cycle and that many people find jobs without any reported search. The determinants of job-search success also vary substantially over the business cycle, implying a substantial social return to public employment agencies at the 1983 trough of the recession but no noticeable benefits when aggregate unemployment is relatively low.
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Lars Osberg (1993) studied this question.
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