Abstract
We structurally analyze a job-search model for unemployed individuals that allows jobs to have different wage/commuting-time combinations. The structural parameter of interest is the degree of willingness to pay for commuting time. We use a unique dataset containing responses by unemployed individuals on the optimal search strategy to estimate this parameter without the need to rely on functional-form assumptions. We address specification errors in the model and measurement errors in the data. The results identify types of individuals who have a high disutility of commuting time.
| Original language | English |
|---|---|
| Pages (from-to) | 269-281 |
| Number of pages | 13 |
| Journal | Journal of business & economic statistics |
| Volume | 15 |
| Issue number | 2 |
| Publication status | Published - Apr 1997 |
Keywords
- Limited-dependent-variable model
- Reservation wage
- Structural estimation
- Unemployment
- Willingness to pay
