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Equilibrium Search Model (equilibrium + search_model)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	100%

Selected Abstracts

Semi-Nonparametric Estimation of an Equilibrium Search Model

OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 3 2000
Pierre Koning
We specify and estimate an equilibrium job search model with productivity differences across labour 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 effects of changes in the minimum wage. [source]

Equilibrium Search Models and the Transition From School To Work

INTERNATIONAL ECONOMIC REVIEW, Issue 2 2001
Audra J. Bowlus
This paper applies the Burdett,Mortensen (1998) equilibrium search model to study the school to work transitions of U.S. high school graduates. We consider the case of discrete firm heterogeneity and provide a computational method to obtain the MLE. Our results show that unemployed 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. Assigning the whites' search parameters to the blacks and re-solving reveals that 75 percent of the observed wage differential is explained by the job destruction rate differences. [source]

Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation

INTERNATIONAL ECONOMIC REVIEW, Issue 2 2000
Christian Bontemps
In this article we develop an equilibrium search model with a continuous distribution of firm productivity types within a given labor market. We characterize equilibrium, derive expressions for the endogenous equilibrium wage distributions, and characterize the set of wage distributions that can be generated by the model. We develop a structural nonparametric estimation method for the productivity distribution. We estimate the model using French longitudinal survey data on labor supply, and we compare the results with those from a French panel data set of firms. The results are informative on the degree to which firms exploit search frictions. [source]

Unemployment and the Rental Rate of Capital

BULLETIN OF ECONOMIC RESEARCH, Issue 4 2000
Ricardo A. Lagos
This paper introduces a standard neoclassical production function in an equilibrium search model of the labour market, in order to analyse the effects that changes in the (exogenous) rental rate of capital have on the unemployment rate. When the number of firms is kept fixed, an increase in the rental rate affects unemployment only through its impact on selectivity, with the direction of the change depending on the size of the worker's unemployment benefits relative to the firm's search costs. Regardless of the behaviour of selectivity, when the number of firms is determined endogenously, an increase in the rental rate always increases unemployment through a process of job destruction. [source]