Semi-Nonparametric Estimation of an Equilibrium Search Model

Oxford Bulletin of Economics & Statistics, Vol. 62, Issue 3

Posted: 22 Aug 2001

See all articles by Pierre Koning

Pierre Koning

CPB Netherlands Bureau of Economic Policy Analysis

Gerard J. van den Berg

VU University Amsterdam - Department of Economics; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; Tinbergen Institute

Geert Ridder

University of Southern California

Abstract

We specify and estimate an equilibrium job search model with productivity differences across labor 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.

Suggested Citation

Koning, Pierre and van den Berg, Gerard J. and Ridder, Geert, Semi-Nonparametric Estimation of an Equilibrium Search Model. Oxford Bulletin of Economics & Statistics, Vol. 62, Issue 3. Available at SSRN: https://ssrn.com/abstract=239248

Pierre Koning (Contact Author)

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands
+31 703383380 (Phone)
+31 703383350 (Fax)

Gerard J. Van den Berg

VU University Amsterdam - Department of Economics ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands
+31 20 444 6132 (Phone)
+32 20 444 6020 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Geert Ridder

University of Southern California ( email )

Kaprielian Hall
Los Angeles, CA 90089
United States
213-740-2110 (Phone)
213-740-8543 (Fax)

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