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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)

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Abstract

In this paper we determine the feasibility of using data from the Panel Study of Income Dynamics to estimate the Burdett-Mortensen general equilibrium search model. The data contain sufficient information on wages, labor force states, durations, and transitions to generate estimates of the model's structural parameters. Our analysis compares the relative labor market search friction for black and white male household heads. In general we find blacks face greater search friction while unemployed than whites, but a similar level while employed. Within the model this finding implies substantial productivity differentials are needed to generate the black-white wage differentials found in the data.

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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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  1. 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. [Downloadable!] (restricted)
  2. Christian Bontemps & Jean-Marc Robin & Gerard J. van den Berg, 1997. "Equilibrium Search with Productivity Dispersion: Theory and Estimation," Tinbergen Institute Discussion Papers 97-081/3, Tinbergen Institute.
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  3. Dale T. Mortensen, 1988. "Equilibrium Wage Distrihutions: A Synthesis," Discussion Papers 811, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  4. 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.
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  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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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lene Kromann, 2009. "Does Employee Body Weight Affect Employers' Behavior?," Economics Working Papers 2009-04, School of Economics and Management, University of Aarhus. [Downloadable!]
  2. Jesper Bagger and Morten Henningsen, 2008. "Job Durations and the Job Search Model: A Two-Country, Multi-Sample Analysis," Discussion Papers 553, Research Department of Statistics Norway. [Downloadable!]
  3. 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. [Downloadable!]
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