The authors develop an empirical model of labor supply that is consistent with on-the-job search and that is identified and estimated by combining two data sets: the U.K. Family Expenditure Survey, which contains information on income and expenditure, and the U.K. Labour Force Survey, which has data on hours and job search behavior. They provide statistical evidence on the compatibility of the two samples for the purposes of estimating their model. The authors find that search has a direct negative effect on hours of work and they establish a strong positive effect of wages on hours. Copyright 1992 by The Review of Economic Studies Limited.
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