Does energy poverty impede job search success? Evidence from the unemployed in Australia

Despite sustained periods of economic growth, energy poverty remains widespread. This article focuses on indirect consequences of energy poverty in the labour market. We postulate that energy poverty acts as an obstacle during the job search process. We follow 1925 unique Australian unemployed persons (who we follow for 2660 periods of unemployment), approximately 10 % of whom experience energy poverty, and conduct a matching analysis. We find that although energy poverty increases job search intensity, it also increases time-toemployment, reduces time-in-employment in the first twelve months following the identification of energy poverty and lowers the employment status twelve months afterwards. Our findings suggest that energy poverty reduces job search quality. Since income is an important driver of energy poverty, the indirect (adverse) effects of energy poverty in the labour market may drive energy poverty entrenchment. Policies aimed at helping unemployed workers escape energy poverty, particularly those with limited social capital, access cheaper energy and/or reduce energy consumption, may prove valuable.