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Competitive versus random search with bargaining: An empirical comparison

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  • Engelhardt, Bryan
  • Rupert, Peter

Abstract

In this paper, we estimate and nest the canonical competitive search model of Moen (1997) inside a random search model with bargaining. The nesting allows us to compare the two models predictions, or comparative statics, using the same empirical estimation. Furthermore, nesting provides likelihood ratio tests that demonstrate the empirical differences between competitive search and random search with bargaining. The differences between the two models include whether workers search in different “sub-markets” with different levels of productivity, they direct the search to each firm/sub-market, and the wage they receive is split efficiently via Hosios (1990).

Suggested Citation

  • Engelhardt, Bryan & Rupert, Peter, 2017. "Competitive versus random search with bargaining: An empirical comparison," Labour Economics, Elsevier, vol. 48(C), pages 183-197.
    • Handle: RePEc:eee:labeco:v:48:y:2017:i:c:p:183-197
    DOI: 10.1016/j.labeco.2017.08.004
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    Cited by:

    1. Braun, Christine & Engelhardt, Bryan & Griffy, Benjamin & Rupert, Peter, 2020. "Testing the independence of job arrival rates and wage offers," Labour Economics, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    Unemployment; Wages; Posting; Directed search;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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