Informal job search methods could alleviate short-term labour market
difficulties of displaced workers by providing information on job opportu-
nities, allowing them to signal their productivity and may mitigate wage
losses through better post-displacement job matching. However if dis-
placement results from reductions in demand for specific sectors/skills,
the use of informal job search methods may increase the risk of job insta-
bility. We examine the effect of jobs search methods on post-displacement
outcomes. While informal job search methods are associated with shorter
unemployment duration, and lower wage losses, they lead to increased job
instability and increased risk of subsequent job displacement.