IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpla/9705004.html
   My bibliography  Save this paper

Equilibrium Search Models and The Transition from School to Work

Author

Listed:
  • Audra J. Bowlus

    (University of Western Ontario)

  • Nicholas M. Kiefer

    (Cornell University)

  • George R. Neumann

    (University of Iowa)

Abstract

This paper applies an equilibrium search to study the transition from schooling to work of U.S. high school graduates. We consider the case where there is heterogeneity in firm productivity and the number of firm types is discrete. For this case the estimation problem is non-standard and the likelihood function is non-differentiable. This paper provides a computational method to obtain the MLE and, through several Monte Carlo studies, characterizes the behavior of the estimator. Applying these methods to the transition from school to work, our results show that nonemployed blacks receive fewer offers than whites and employed blacks are more likely to lose their jobs. Importantly, employed blacks and whites receive job offers at the same rate. However, the difference in job destruction rates is so great that it accounts for three-quarters of the black-white wage differential.

Suggested Citation

  • Audra J. Bowlus & Nicholas M. Kiefer & George R. Neumann, 1997. "Equilibrium Search Models and The Transition from School to Work," Labor and Demography 9705004, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpla:9705004
    Note: Type of Document - MS Word-V7; prepared on IBM PC ; to print on Windows; pages: 43 ; figures: included
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/lab/papers/9705/9705004.doc.gz
    Download Restriction: no

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/lab/papers/9705/9705004.ps.gz
    Download Restriction: no

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/lab/papers/9705/9705004.html
    Download Restriction: no

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/lab/papers/9705/9705004.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    JEL classification:

    • J - Labor and Demographic Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpla:9705004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.