ABOUT
Financial shocks cause scarcity—the feeling of having too little. Scarcity, in turn, can influence job search behaviour. For example, jobseekers who experience a financial shock may pay less attention to critical details when reviewing job descriptions, complicating their path to re-employment. This study explores how negative financial shocks impact job search behaviour across different wealth-income groups. The research categorizes individuals into four segments based on their financial buffers—economically precarious, income-buffered, asset-buffered, and wealthy—to understand how wealth and income levels influence job search quality. Using innovative mouse-tracking technology, the study examines how jobseekers allocate attention to job features like salary, location, and benefits. The study aims to shed light on the interplay between financial stability and job search behaviour in an era of rising inequality.
EXPECTED OUTCOMES
Findings from this study will interest labour market intermediaries, such as LinkedIn, as well as policymakers who design and deliver unemployment services. The study expects that economically precarious jobseekers who experience a financial shock will focus on a narrow subset of information, such as salary, at the expense of other important details, such as job responsibilities. This narrow focus might hurt their job search, leading to worse employment outcomes. By contrast, jobseekers with some financial cushion will consider a wider range of factors, which could help them make better decisions and improve their chances of finding a good job.
HOW IT RELATES TO THE STONE CENTRE’S MISSION
This project helps us understand how people’s joint income and wealth positions relate to job search behaviour. If low-wealth groups are more affected by scarcity and less effective in their job searches, rising income and wealth inequality could lead to a growing number of individuals facing prolonged unemployment, lower wages, and related challenges such as health issues. Additionally, this study offers potential remedies for private and public job search platforms and services.