Job search in the presence of a stressor: Does financial hardship change the effectiveness of job search?

Following a group of 2,973 Australian unemployed job seekers over time, we confirm predictions from Self-Determination Theory, Conservation Resources Theory and Scarcity that the presence financial hardship during search adversely affects quality subsequently effectiveness (measured one year later). We show importance in labor market research controlling for range confounding factors including impact on intensity. The implemented controls allow more precise inferences effect quality/effectiveness, than so far achieved this emerging body literature.