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Job search and commuting time

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  • Berg, G.J. van den

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Gorter, C.

Abstract

We structurally analyze a job search model for unemployed individuals that allows jobs to have different wage/commuting-time combinations. The structural parameter of interest is the willingness to pay for commuting time. We use a unique dataset containing subjective responses on the optimal search strategy by unemployed individuals in order to estimate this structural parameter without the need to rely on strong functional form assumptions. We pay special attention to specification errors in the model and to measurement errors in the data. The estimation results identify certain types of individuals who have a very low willingness to pay for (i.e. a very high disutility of) commuting time.

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Bibliographic Info

Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0001.

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Date of creation: 1996
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Handle: RePEc:dgr:vuarem:1996-1

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Web page: http://www.feweb.vu.nl

Related research

Keywords: structural estimation; job search model; commuting time; reservation wage; willingness to pay;

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References

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  1. van den Berg, Gerard J, 1995. "Wage dispersion and mobility," Economic Modelling, Elsevier, vol. 12(1), pages 15-27, January.
  2. James J. Heckman & Christopher J. Flinn, 1982. "New Methods for Analyzing Structural Models of Labor Force Dynamics," NBER Working Papers 0856, National Bureau of Economic Research, Inc.
  3. van den Berg, Gerard J, 1990. "Search Behaviour, Transitions to Nonparticipation and the Duration of Unemployment," Economic Journal, Royal Economic Society, vol. 100(402), pages 842-65, September.
  4. Trudy Ann Cameron & Michelle D. James, 1986. "Efficient Estimation Methods for "Closed-Ended" Contingent Valuation Surveys," UCLA Economics Working Papers 404, UCLA Department of Economics.
  5. Berg, G.J. van den, 1987. "Nonstationarity in job search theory," Research Memorandum 242, Tilburg University, Faculty of Economics and Business Administration.
  6. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
  7. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-76, November.
  8. Timothy J. Gronberg & W. Robert Reed, 1994. "Estimating Workers' Marginal Willingness to Pay for Job Attributes Using Duration Data," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 911-931.
  9. Blau, David M, 1991. "Search for Nonwage Job Characteristics: A Test of the Reservation Wage Hypothesis," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 186-205, April.
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