Working Paper

On-the-Job Search in Europe and the U.S.: Precautionary vs. Job Ladder Motives

Abstract: While employer-to-employer (E2E) transitions are by now well-documented, these data alone cannot reveal what drives mobility: who searches, why, and how search translates into transitions. Using novel panel data from the ECB and NY Fed consumer expectations surveys, we provide the first systematic cross-country analysis of on-the job search (OJS) and E2E transitions across eleven euro area countries and the U.S. Our data uniquely include direct measures of OJS and its motives (job loss expectations for precautionary, pay satisfaction for job ladder) for all workers, not just searchers. We find that OJS is widespread, making employed workers the majority of searchers, and it strongly predicts E2E transitions. Motives differ dramatically: precautionary search dominates in Europe, while the job ladder motive dominates in the U.S. OJS is highly persistent, with 40% continuing to search even after starting a new job.

JEL Classification: J64; D84;

https://doi.org/10.20955/wp.2026.015

Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Working Papers

Publication Date: 2026-06-30

Number: 2026-015