Empirical labor search models: A survey

Arbeitspapier

This paper surveys the existing empirical research that uses search theory to empirically analyze labor supply questions in a structural framework, using data on individual labor market transitions and durations, wages, and individual characteristics. The starting points of the literature are the Mincerian earnings function, Heckman’s classic selection model, and dynamic optimization theory. We develop a general framework for the labor market where the search for a job involves dynamic decision making under uncertainity. It can be specialized to be in agreement with most published research using labor search models. We discuss estimation, policy evaluation with the estimated model, equilibrium model versions, and the decomposition of wage variation into factors due to heterogeneity of various model determinants as well as search frictions themselves. We summarize the main empirical conclusions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2003:18

Classification and Topics

• Classification: Wirtschaft ; Labor Force and Employment, Size, and Structure ; Wage Level and Structure; Wage Differentials ; Labor Contracts ; Monopsony; Segmented Labor Markets
• Subject: Labor search models

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Eckstein, Zwi ; van den Berg, Gerard J
• Event: Veröffentlichung
• (who): Institute for Labour Market Policy Evaluation (IFAU)
• (where): Uppsala
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/82218
• Last update: 10.03.2025, 11:41 AM CET