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Semi-nonparametric Estimation of an Equilibrium Search Model

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  • Koning, Pierre
  • van den Berg, Gerard J
  • Ridder, Geert

Abstract

We specify and estimate an equilibrium job search model with productivity differences across labor market segments The model allows for two types of unemployment: frictional unemployment due to search frictions and structural unemployment due to wage floors Wage floors exist because of high unemployment benefits or binding minimum wages The productivity distribution is estimated semi-nonparametrically along the lines of Gallant-Nychka using Hermite series approximation We decompose the total unemployment rate and we examine the effect of changes in the minimum wage
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Suggested Citation

  • Koning, Pierre & van den Berg, Gerard J & Ridder, Geert, 2000. " Semi-nonparametric Estimation of an Equilibrium Search Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(3), pages 327-356, July.
  • Handle: RePEc:bla:obuest:v:62:y:2000:i:3:p:327-56
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    Cited by:

    1. van den Berg, Gerard J. & van Vuuren, Aico, 2010. "The effect of search frictions on wages," Labour Economics, Elsevier, vol. 17(6), pages 875-885, December.

    More about this item

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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