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Laboratory Experiments with a Finite-Horizon Job-Search Model

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Author Info
Cox, James C
Oaxaca, Ronald L

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Abstract

In this article we explain the essential role of controlled experiments in testing job-search models. We derive the testable implications of a finite-horizon job-search model and lay out the design of the controlled experiments that we use to test those implications. We present the results of several parametric and nonparametric tests, all conditional on the actual draws of the wage offers. Overall, we find close agreement between the predictions of the search model and observations of search duration and income for several experimental treatments. Copyright 1989 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 2 (1989)
Issue (Month): 3 (September)
Pages: 301-29
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Handle: RePEc:kap:jrisku:v:2:y:1989:i:3:p:301-29

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  1. Armin Falk & David Huffman & Uwe Sunde, 2006. "Self-Confidence and Search," IZA Discussion Papers 2525, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Rami Zwick & Amnon Rapoport & Alison King Chung Lo & A. V. Muthukrishnan, 2001. "Consumer Search: Not Enough Or Too Much?," Experimental 0110002, EconWPA. [Downloadable!]
  3. Brown, Gordon D. A. & Gardner, Jonathan & Oswald, Andrew & Qian, Jing, 2005. "Does Wage Rank Affect Employees’ Wellbeing?," IZA Discussion Papers 1505, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Boone, J. & Sadrieh, A. & van Ours, J. C., 2004. "Experiments on unemployment benefit sanctions and job search behavior," Discussion Paper 8, Tilburg University, Center for Economic Research. [Downloadable!]
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  5. Schunk, Daniel & Winter, Joachim, 2004. "The Relationship Between Risk Attitudes and Heuristics in Search Tasks: A Laboratory Experiment," Sonderforschungsbereich 504 Publications 04-23, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim. [Downloadable!]
    Other versions:
  6. James Cox & Ronald Oaxaca, 2000. "Good News and Bad News: Search from Unknown Wage Offer Distributions," Experimental Economics, Springer, vol. 2(3), pages 197-225, March. [Downloadable!] (restricted)
  7. John Duffy, 2008. "Macroeconomics: A Survey of Laboratory Research," Working Papers 334, University of Pittsburgh, Department of Economics, revised Mar 2008. [Downloadable!]
  8. Johnson, Eric J. & Camerer, Colin & Sen, Sankar & Rymon, Talia, 1998. "Detecting Failures of Backward Induction: Monitoring Information Search in Sequential Bargaining," Working Papers 1040, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  9. Daniel Friedman & Kai Pommerenke & Rajan Lukose & Garrett Milam & Bernardo Huberman, 2007. "Searching for the sunk cost fallacy," Experimental Economics, Springer, vol. 10(1), pages 79-104, March. [Downloadable!] (restricted)
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  10. James Cox & Daniel Friedman & Steven Gjerstad, 2004. "A Tractable Model of Reciprocity and Fairness," Experimental 0406001, EconWPA. [Downloadable!]
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  11. Markus Pannenberg, 2007. "Risk Aversion and Reservation Wages," IZA Discussion Papers 2806, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Porter, David & Smith, Vernon, 1992. "Price Expectations in Experimental Asset Markets with Futures Contracting," Working Papers 827, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  13. Rob Aalbers & Eline van der Heijden & Jan Potters & Daan van Soest & Herman Vollebergh, 2007. "Technology Adoption Subsidies: An Experiment with Managers," Tinbergen Institute Discussion Papers 07-082/3, Tinbergen Institute. [Downloadable!]
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  14. Daniel Houser & Michael Keane & Kevin McCabe, 2002. "Behavior in a dynamic decision problem: An analysis of experimental evidence using a bayesian type classification algorithm," Experimental 0211001, EconWPA. [Downloadable!]
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  15. Joep Sonnemans, 1998. "Decision and Strategies in a Sequential Search Experiment," Tinbergen Institute Discussion Papers 98-032/1, Tinbergen Institute. [Downloadable!]
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