This chapter discusses various methods that have been used to estimate structural models of search and survival models. Most of the focus is on using available data, usually on unemployment spell lengths and accepted wage o¤ers, to estimate the parameters of speci...c search models. In particular, we focus on estimating the parameters of the wage o¤er distribution, the reservation wage or reser...

This paper integrates labor market search into a dynamic general equilibrium model to analyze the macroeconomic e®ects of a tari®. The search friction creates a wedge between the marginal product of labor and the product wage. With perfectly °exible prices and wages, the model captures the intuitive e®ect that a permanent increase in the tari® improves the country's terms of trade, which tends ...

This paper incorporates two novelties into steady-state, macroscopic models of street-hail taxi service: (i) heterogeneous drivers; (ii) explicit treatment a competitive rental market for medallions (the rights to cruise passengers). When drivers vary only by reservation wage, issuing raises every driver’s take-home pay, and the social optimum requires subsidy. marginal cost, may hurt with low-...

Contemporary subsistence hunting practices of North American Indians have been questioned because of hunters’ use of modern technologies and integration of wage-based and subsistence livelihoods. Tribal traditional ecological knowledge (TEK) has been questioned on similar grounds and used as justification for ignoring tribal perspectives on critical natural resource conservation and development...

Can Insider Power Affect Employment? Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional answer in the theoretical literature is that insider power has no influence on employment, provided that the newly hired employees (entrants) receive their reservation wages. The reason given is that an increase in insider wages gives rise t...

Decomposing wages into worker and firm wage components, we find that firm-fixed components are sizeable parts of workers' wages. If workers can only imperfectly observe the extent of firm-fixed components in their wages, they might be misled about the overall wage distribution. Such misperceptions may lead to unjustified high reservation wages, resulting in overly long unemployment durations. W...

We analyse firms’ incentives to invest in scientific research as we characterize the optimal contracting of scientists intrinsically motivated to produce basic science. In our setting, firms face a large pool of heterogeneous scientists, with different degrees of scientific ability, and each scientist has reservation utility that is non-decreasing with their ability. Once hired scientists can s...

We study inference in structural models with a jump in the conditional density, where location and size of the jump are described by regression curves. Two prominent examples are auction models, where the bid density jumps from zero to a positive value at the lowest cost, and equilibrium job-search models, where the wage density jumps from one positive level to another at the reservation wage. ...

This paper presents a structural model of sequential job search, in which the individual decision makers incorporate labour supply in the job acceptance decision. The model satisfies the reservation wage property. Given the level of the offered wage rate, individuals can choose the number of weekly working hours optimally, by maximizing utility subject to the budget constraint, Specific attenti...