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Essays on Job Search, Unemployment, and Regulatory Compliance By G6kqe Bagbug B.A., Istanbul University, 2005 M.A., Istanbul University, 2008 M.S., Massachusetts Institute of Technology, 2015 SUBMITTED TO THE SLOAN SCHOOL OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN MANAGEMENT at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY JUNE 2017 C2017 Massachusetts Institute of Technology. All rights reserved. I Signature redacted Signature of Author: Department of Management May 5, 2017 Signature redacted Certified by: Thomas A. Kochan George Maverick Bunker Professor of Management/ Thesis Co-Supe/visor Signature redacted Certified by: /&oberto M ern ez William F. Pounds Professor in ag ent Thesis C -Sup isor Signature redacted Accepted by: INSTITUTE MASSACHUSETTS Catherine Tucker Sloan Distinguished Professor of Management MASSACHUSETTS INSTITUTE OF TECHNOLOGY co Professor of Marketing LU Chair, MIT Sloan PhD Program JUN 262017 I 0 LIBRARIES 77 Massachusetts Avenue Cambridge, MA 02139 MfTLibraries http://Iibraries.mit.edu/ask DISCLAIMER NOTICE Due to the condition of the original material, there are unavoidable flaws in this reproduction. We have made every effort possible to provide you with the best copy available. Thank you. The images contained in this document are of the best quality available. Essays on Job Search, Unemployment, and Regulatory Compliance by Gik9e Bagbug Submitted to the Sloan School of Management on May 5, 2017 in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Management Abstract This dissertation is composed of four essays, each studying limits to the means that are famously known to be effective. In the first essay, I investigate the effect of using social ties on the quality of opportunities pursued in job search. Using fixed effects models, I show that when the job seeker uses contacts, she pursues jobs that pay less than the jobs she pursues through formal methods. In addition, the analysis show that networks limit the geographical and occupational diversity of jobs pursued. In the second essay, using a mixed methods approach I examine how the negative emotional toll of long-term unemployment (LTU) is shaped by the interaction of gender and marital status. The interviews reveal a pattern with more marital tensions that exacerbate the emotional toll of LTU reported by married men than married women. The analysis of survey data show that overall marriages are helpful to the wellbeing of both unemployed men and women. Yet, for married men but not for married women, the analysis revealed that the significance of the benefits derived from marriage disappears once household income is controlled. The third essay examines whether introducing choice into a mandatory training program makes any difference in Unemployment Insurance recipients' job search performance. Using a field experiment design, I compare job search outcomes of individuals who have unconstrained workshop choices to others who only have a constrained option. Analyses show that providing the option of selecting which workshop to attend does not improve outcomes for unemployed. In the fourth essay, using data from safety inspections in laboratories at a large university, I investigate whether conducting semi-annual inspections and reporting findings back to responsible constituencies decreases the number of violations. The analyses show that the Environmental, Health, and Safety Management System did not reduce the number of violations. Rather, the results show a widening gap between compliant and non-compliant scientists. Using both lab-level quantitative data and interviews with inspectors and EHS personnel, I delineate the factors that impede the success of the system. Thesis Co-Supervisor: Thomas A. Kochan Title: George Maverick Bunker Professor of Management Thesis Co-Supervisor: Roberto M. Fernandez Title: William F. Pounds Professor in Management 1 To Atif Balbug 2 Acknowledgements Completing a doctoral program is not an easy journey. One needs a supportive committee more than anything. I was very lucky in this sense. I first want to thank Tom Kochan. He always encouraged me to see the broader picture and to think about the policy implications of my research. Beyond academic guidance, Tom provided me any kind of support a student needs. Words are not enough to express my gratitude to him. I thank Roberto Fernandez who helped me develop a taste for good research. His time and effort that he gave to me facilitated my transition from a consumer to a producer of knowledge. I also would like to thank Emilio Castilla who helped me improve my quantitative research skills. His attention to details has always been very helpful. I have had an angel on my shoulder: Susan Silbey. Susan not only guided my intellectual growth but also showed tremendous care to me and my family. Paul Osterman has always been very helpful with his sharp eyes for seeing puzzles and alternative explanations. To thank Ofer Sharone enough, I must write another acknowledgement only dedicated to him. Ofer, my role model, is an example of a scholar who simultaneously does good research and makes difference in people's lives. I have learned from him a lot and will continue learning. I am enormously grateful to the whole IWER community including my professors Bob McKersie, Erin Kelly, and Matt Amengual and my friends Alberto Fuentes, Alex Kowalski, Andrew Weaver, Aruna Ranganathan, Ben Rissing, Duanyi Yang, George Ward, Mahreen Khan, Maja Tampe, Ryan Hammond, and Will Kimball. Friends always remind the beautiful aspects of the world. I was very lucky to be admitted to the program in the same year with Hye Jin Rho. Without her, I would have felt very lonely. I owe so much to Christine Riordan's thoughtful friendship. My friends, Arvind Karunakaran, Burak Dura, Can Ulusel, Elliott Greenblatt, Hyejun Kim, Minjae Kim, Josh Krieger, Orhan Celiker, Ozge Karanfil, Paul Tillberg, Santiago Campero, Sema Ermez, Shirley Poyau, Stefan Beljean, made my life here more exciting. I also thank my friends at Turkish Student Association and Eastgate Family Housing. During my Ph.D., I was very lucky to get help from many nice people at MIT and in Cambridge. I owe enormous thanks to Dave Buck, Katy Bertman, Jacky McGoldrick, Ayn Cavicchi, Hillary Ross, Davin Schnappauf, Sarah Massey, and Sharon Cayley. Finally, I thank my parents for their endless support. My deepest gratitude is, of course, to my wife Suzan. She is the co-producer of this happy ending. 3 Table of Contents 1. Do Social Networks Lead to Better Opportunities to Pursue? Evidence from Job A pplications ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..... ... ... ... ... ... ... ... ... ... ...... 7 1.1. Introduction ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..... ... ... ... ... ..... 7 1.2. Theoretical and Empirical Background ... ... ... ... ... ... ... ...... ... ... ... ... ... ... 8 1.3. The Search Process... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... ... ... ..... 10 1.4. The Current Study ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. ... .... ...... ... 12 1.5. Methods and Data... ... ... ... ... ... ... ... ... ... ... ... ... ... ..... ... ... ... ... ... ... ... ... 15 1.5.1. Study V ariables ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..... 16 1.5.1.1. Search Methods ... ... ... ... ... ... ... ... ... ... ... ... ... ..... ... ... ... ... ... ..... 16 1.5.1.2. Job Q uality ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... 17 1.6 R esults ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ....... ... ... ... ... ... ... ... ... ..... 18 1.6.1. Indirect Tests (Between-Individual Analyses)... ... ... ... ... ... ... ... ... ... ... ... ... 18 1.6.2. Direct Tests (Within-Individual Analyses)... ... ... ... ... ... ... ... ... ... ... ... ... ... 19 1.6.3. Robustness Checks ... ... ... ....... ...... ... ... ... ... ... ... ... ... .... ... ... ... ... 19 1.6.3.1. Checks with wage ... ... ... ... ....... ... .. ... ... ... ... ... ... ... ... ... ..... 19 1.6.3.2. Check with a sub-sample ... ... ... ... ....... ... ... ... ... ... ... ... ... ... ... ... 20 1.6.3.3. Check with another proxy for job quality ... ... ... ... ... ... ... ... ... ... ... .... 20 1.6.4. Analyses of Occupational and Spatial Scope ... ... ... ... ... ... ... ... ... ... ... ... ... 21 1.7 D iscussion ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...... ... .. 22 1.8. References ... ........ ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...... ... ...... ... .. 25 1.9. Tables ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...... ... ... ... ... ..... ... .... 28 1.10. Figures ... ... ... ... ... ... ... ... ......... ... ... ... ... ... ....... ... ... ... ... ... ... 39 1.11. Appendix ..... ...... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..... 41 2. The Emotional Toll of Long-Term Unemployment: Examining the Interaction Effects of Gender and Marital Status ... ... ... ... ... ... ... ... ... ... ... ... .. .... ... ... ... ... ... ... 45 2.1. Introduction ... ... ... ... ... ... ........ ... ... ... ... ... ... ..... ... ...... ... ... ... ... ... 45 2.2. The Great Recession and Long-Term Unemployment ... ... ... ... ..