Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5102048 | Labour Economics | 2017 | 15 Pages |
Abstract
In this paper, we estimate and nest the canonical competitive search model of Moen (1997) inside a random search model with bargaining. The nesting allows us to compare the two models predictions, or comparative statics, using the same empirical estimation. Furthermore, nesting provides likelihood ratio tests that demonstrate the empirical differences between competitive search and random search with bargaining. The differences between the two models include whether workers search in different “sub-markets” with different levels of productivity, they direct the search to each firm/sub-market, and the wage they receive is split efficiently via Hosios (1990).
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Bryan Engelhardt, Peter Rupert,