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An Empirical Equilibrium Job Search Model With Search on the Job and Heterogeneous Workers and Firms
Author(s) -
Bontemps Christian,
Robin JeanMarc,
Van den Berg Gerard J.
Publication year - 1999
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/1468-2354.00052
Subject(s) - search theory , economics , estimation , econometrics , job creation , computer science , microeconomics , labour economics , management
In this article we present and estimate a synthesis of previous equilibrium search models, allowing for continuous distributions of workers' opportunity costs of employment as well as firms' productivities. The model allows for on‐the‐job search, and we assume that job offer arrival rates for workers are independent of their labor‐market state. We derive the theoretical implications of these assumptions, we provide simulations, and we develop a semiparametric estimation procedure that we apply to a dataset of individual labor‐market histories.