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Measuring Labor Market Frictions: A Cross-Country Comparison

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  • Ridder, Geert

    ()
    (University of Southern California)

  • van den Berg, Gerard J.

    ()
    (University of Mannheim)

Abstract

In this paper we define and estimate measures of labor market frictions using data on job durations. We compare different estimation methods and different types of data. We propose and apply an unconditional inference method that can be applied to aggregate duration data. It does not require wage data, it is invariant to the way in which wages are determined, and it allows workers to care about other job characteristics. The empirical analysis focuses on France, but we perform separate analyses for the USA, the UK, Germany and the Netherlands. We quantify the monopsony power due to search frictions and we examine the policy effects of the minimum wage, unemployment benefits and search frictions.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 814.

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Length: 31 pages
Date of creation: Jul 2003
Date of revision:
Publication status: published in: Journal of the European Economic Association, 2003, 1 (1), 224-244
Handle: RePEc:iza:izadps:dp814

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Related research

Keywords: job search; minimum wage; monopsony power; cross-country comparisons; search frictions; wages; mobility; labor market policy;

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