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Estimating Equilibrium Search Models from Finnish Data

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  • Kyyrä, Tomi

Abstract

Empirical equilibrium search models have attracted a growing interest in recent years. Estimation of such models has not been completely successful, however. This has led researchers to develop more sophisticated versions of the models, in an attempt to get a better fit to the data. This study investigates whether various proposed specifications are able to explain the labour market histories observed in Finnish panel data. We begin with a pure search model in which all wage dispersion results from search frictions. Then we proceed to more complex specifications by introducing measurement error in wages and unobserved employer heterogeneity.

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  • Kyyrä, Tomi, 2001. "Estimating Equilibrium Search Models from Finnish Data," Discussion Papers 256, VATT Institute for Economic Research.
  • Handle: RePEc:fer:dpaper:256
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    File URL: https://www.doria.fi/handle/10024/148155
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    3. Gerard J. van den Berg, 2003. "Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(4), pages 1337-1357, November.
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    5. Christensen, Bent Jesper & Kiefer, Nicholas M, 1994. "Measurement Error in the Prototypal Job-Search Model," Journal of Labor Economics, University of Chicago Press, vol. 12(4), pages 618-639, October.
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    9. Eckstein, Zvi & van den Berg, Gerard J., 2007. "Empirical labor search: A survey," Journal of Econometrics, Elsevier, vol. 136(2), pages 531-564, February.
    10. Gerard J. Van Den Berg & Aïco Van Vuuren, 2002. "Using Firm Data to Assess the Performance of Equilibrium Search Models of the Labor Market," Annals of Economics and Statistics, GENES, issue 67-68, pages 227-256.
    11. Bowlus, Audra J, 1997. "A Search Interpretation of Male-Female Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 625-657, October.
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    15. Bent Jesper Christensen & Rasmus Lentz & Dale T. Mortensen & George R. Neumann & Axel Werwatz, 2005. "On-the-Job Search and the Wage Distribution," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 31-58, January.
    16. Fabien Postel-Vinay & Jean-Marc Robin, 2002. "Equilibrium wage dispersion with worker and employer heterogeneity," Post-Print hal-03587660, HAL.
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    18. Bontemps, Christian & Robin, Jean-Marc & Van den Berg, Gerard J, 1999. "An Empirical Equilibrium Job Search Model with Search on the Job and Heterogeneous Workers and Firms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(4), pages 1039-1074, November.
    19. Christensen, Bent Jesper & Kiefer, Nicholas M., 1997. "Inference in non-linear panel models with partially missing observations The case of the equilibrium search model," Journal of Econometrics, Elsevier, vol. 79(2), pages 201-219, August.
    20. Kyyrä, Tomi & Korkeamäki, Ossi, 2000. "Integrated Panel of Finnish Companies and Workers," Discussion Papers 226, VATT Institute for Economic Research.
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    22. Koning, Pierre & Ridder, Geert & van den Berg, Gerard J, 1995. "Structural and Frictional Unemployment in an Equilibrium Search Model with Heterogeneous Agents," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(S), pages 133-151, Suppl. De.
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    Cited by:

    1. Oliveira, Paulo Felipe de & Carvalho, José Raimundo, 2016. "Regional Labor Market Differences in Brazil and Search Frictions: Some Structural Estimates," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 70(1), March.

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    More about this item

    Keywords

    Search theory; wage dispersion; labour market; Labour market; Työmarkkinat; Labor market and policies promoting economic growth; Työmarkkinat ja kasvua tukeva politiikka; C000 - Mathematical and Quantitative Methods: General; D210 - Firm Behavior; J300 - Wages; Compensation; and Labor Costs: General; J400 - Particular Labor Markets: General;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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