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Search Friction in the U.S. Labor Market

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Author Info

  • Audra J. Bowlus

    ()
    (University of Western Ontario and Vrije Universiteit Amsterdam)

  • Shannon N. Seitz

    (University of Western Ontario)

Abstract

In this paper we determine the feasibility of using data from thePanel Study of Income Dynamics to estimate the Burdett-Mortensengeneral equilibrium search model. The data contain sufficientinformation on wages, labor force states, durations, and transitionsto generate estimates of the model's structural parameters. Ouranalysis compares the relative labor market search friction forblack and white male household heads. In general we find blacks facegreater search friction while unemployed than whites, but a similarlevel while employed. Within the model this finding impliessubstantial productivity differentials are needed to generate theblack-white wage differentials found in the data.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 98-113/3.

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Date of creation: 21 Oct 1998
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Handle: RePEc:dgr:uvatin:19980113

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Web page: http://www.tinbergen.nl

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  1. Gerard J. van den Berg & Geert Ridder, 1998. "An Empirical Equilibrium Search Model of the Labor Market," Econometrica, Econometric Society, vol. 66(5), pages 1183-1222, September.
  2. C, Bontemps & Jean-Marc Robin & G, Van Den Berg, 1997. "Equilibrium Search with Productivity Dispersion : Theory and Estimation," Working Papers 97-09, Centre de Recherche en Economie et Statistique.
  3. Bowlus, Audra J & Kiefer, Nicholas M & Neumann, George R, 1995. "Estimation of Equilibrium Wage Distributions with Heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(S), pages S119-31, Suppl. De.
  4. Dale T. Mortensen, 1988. "Equilibrium Wage Distrihutions: A Synthesis," Discussion Papers 811, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  5. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-73, May.
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Cited by:
  1. Gerard J. van den Berg, 1998. "Empirical Inference with Equilibrium Search Models of the Labor Market," Tinbergen Institute Discussion Papers 98-089/3, Tinbergen Institute.
  2. Jesper Bagger & Morten Henningsen, 2008. "Job Durations and the Job Search Model: A Two-Country, Multi-Sample Analysis," Discussion Papers 553, Research Department of Statistics Norway.
  3. Lene Kromann, 2009. "Does Employee Body Weight Affect Employers' Behavior?," Economics Working Papers 2009-04, School of Economics and Management, University of Aarhus.
  4. Audra J. Bowlus & Masashi Miyairi & Chris Robinson, 2013. "Immigrant Job Search Assimilation in Canada," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20136, University of Western Ontario, CIBC Centre for Human Capital and Productivity.

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