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Job search, search intensity and labour market transitions : an empirical analysis

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  • Bloemen, Hans G.

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

Abstract

In this paper we present an empirical structural job search model with endogenously determined search intensity. The model describes both the behaviour of unemployed job searchers and on-the-job search. We use data on various indicators (or search channels) for the intensity of search, like the monthly number of applications, to study the influence of the intensity of search on labour market transitions. The estimation results give us insight in the effectiveness of search. The impact of the benefit level on search intensity of unemployed job searchers is quantified. Moreover, the estimation results are used to gain insight in the "discouraged worker" effect. The generalized residuals are studied to discuss the fit of the model.

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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 0026.

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Date of creation: 2003
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Handle: RePEc:dgr:vuarem:2003-26

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

Related research

Keywords: job search; duration models; estimation by simulation;

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  1. Berg, G.J. van den, 1988. "Search behaviour, transitions to nonparticipation and the duration of unemployment," Research Memorandum 338, Tilburg University, Faculty of Economics and Business Administration.
  2. Yoon, Bong Joon, 1981. "A Model of Unemployment Duration with Variable Search Intensity," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 599-609, November.
  3. Narendranathan, Wiji & Nickell, Stephen, 1985. "Modelling the process of job search," Journal of Econometrics, Elsevier, vol. 28(1), pages 29-49, April.
  4. van den Bergh, Gerhard & van deer Klaauw, Bas, 2001. "Counseling and monitoring of unemployed workers: theory and evidence from a controlled social experiment," Working Paper Series 2001:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  5. 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.
  6. Borsch-Supan, Axel & Hajivassiliou, Vassilis A., 1993. "Smooth unbiased multivariate probability simulators for maximum likelihood estimation of limited dependent variable models," Journal of Econometrics, Elsevier, vol. 58(3), pages 347-368, August.
  7. Benhabib, Jess & Bull, Clive, 1983. "Job Search: The Choice of Intensity," Journal of Political Economy, University of Chicago Press, vol. 91(5), pages 747-64, October.
  8. Koning, Pierre & Berg, Gerard J. van den & Ridder, Geert, 1997. "A structural analysis of job search methods and subsequent wages," Serie Research Memoranda 0036, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  9. Bloemen, Hans G., 1997. "Job search theory, labour supply and unemployment duration," Journal of Econometrics, Elsevier, vol. 79(2), pages 305-325, August.
  10. van den Berg, Gerard J, 1992. "A Structural Dynamic Analysis of Job Turnover and the Costs Associated with Moving to Another Job," Economic Journal, Royal Economic Society, vol. 102(414), pages 1116-33, September.
  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. Lindeboom, Maarten & Theeuwes, Jules, 1993. "Search, Benefits and Entitlement," Economica, London School of Economics and Political Science, vol. 60(239), pages 327-46, August.
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