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Job search and commuting time

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  • Berg, G.J. van den

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

  • Gorter, C.

Abstract

We structurally analyze a job search model for unemployed individuals that allows jobs to have different wage/commuting-time combinations. The structural parameter of interest is the willingness to pay for commuting time. We use a unique dataset containing subjective responses on the optimal search strategy by unemployed individuals in order to estimate this structural parameter without the need to rely on strong functional form assumptions. We pay special attention to specification errors in the model and to measurement errors in the data. The estimation results identify certain types of individuals who have a very low willingness to pay for (i.e. a very high disutility of) commuting time.

Suggested Citation

  • Berg, G.J. van den & Gorter, C., 1996. "Job search and commuting time," Serie Research Memoranda 0001, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:1996-1
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    References listed on IDEAS

    as
    1. van den Berg, Gerard J, 1990. "Search Behaviour, Transitions to Nonparticipation and the Duration of Unemployment," Economic Journal, Royal Economic Society, vol. 100(402), pages 842-865, September.
    2. van den Berg, Gerard J, 1995. "Wage dispersion and mobility," Economic Modelling, Elsevier, vol. 12(1), pages 15-27, January.
    3. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-1676, November.
    4. Gerard J. van den Berg, 1990. "Nonstationarity in Job Search Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(2), pages 255-277.
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    6. Timothy J. Gronberg & W. Robert Reed, 1994. "Estimating Workers' Marginal Willingness to Pay for Job Attributes Using Duration Data," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 911-931.
    7. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
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