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An empirical equilibrium job search model with continuously distributed heterogeneity of workers' opportunity costs of employment and firms productivities, and search on the job

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Author Info
Bontemps, Christian (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)
Robin, Jean-Marc
Berg, Gerard J. van den

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Abstract

In this paper we present and estimate a synthesis of previous equilibrium search models: allowing for continuous distributions of workers opportunity costs of employment, as well as firms' productivities. The model allows for on-the-job search, and we assume that job offer arrival rates for workers are independent of their labor market state. We derive the theoretical implications of these assumptions, we provide simulations, and we develop a semi-parametric estimation procedure that we apply to a dataset of individual labor market histories.

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Publisher Info
Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0002.

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Date of creation: 1998
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Handle: RePEc:dgr:vuarem:1998-2

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Related research
Keywords: Labor market equilibrium; wages; heterogeneity; unemployment; unemployment benefits; frictions;

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Find related papers by JEL classification:
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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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. van den Berg, Gerard J, 1994. "The Effects of Changes of the Job Offer Arrival Rate on the Duration of Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 478-98, July. [Downloadable!] (restricted)
  2. Magnac, Thierry & Robin, Jean-Marc, 1994. "An econometric analysis of labour market transitions using discrete and tenure data," Labour Economics, Elsevier, vol. 1(3-4), pages 327-346, September. [Downloadable!] (restricted)
    Other versions:
  3. Bonnal, Liliane & Fougere, Denis & Serandon, Anne, 1997. "Evaluating the Impact of French Employment Policies on Individual Labour Market Histories," Review of Economic Studies, Blackwell Publishing, vol. 64(4), pages 683-713, October. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. Alan Manning, 1994. "Labour Markets with Company Wage Policies," CEP Discussion Papers dp0214, Centre for Economic Performance, LSE.
  6. Gerard J. van den Berg & Bas van der Klaauw, 1998. "Combining Micro and Macro Unemployment Duration Data," Tinbergen Institute Discussion Papers 98-098/3, Tinbergen Institute. [Downloadable!]
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  7. C, Bontemps ; Jean-Marc Robin ; G, Van Den Berg, . "Equilibrium Search with Productivity Dispersion : Theory and Estimation," Working Papers 97-09, Centre de Recherche en Economie et Statistique. [Downloadable!]
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  8. Diamond, Peter A., 1971. "A model of price adjustment," Journal of Economic Theory, Elsevier, vol. 3(2), pages 156-168, June. [Downloadable!] (restricted)
  9. Dale T. Mortensen, 1988. "Equilibrium Wage Distrihutions: A Synthesis," Discussion Papers 811, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  10. 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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  11. 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.
  12. Albrecht, James W & Vroman, Susan B, 1992. "Non-existence of Single-Wage Equilibria in Search Models with Adverse Selection," Review of Economic Studies, Blackwell Publishing, vol. 59(3), pages 617-24, July. [Downloadable!] (restricted)
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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. 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!]
    Other versions:
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