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.
|Number of pages||13|
|Journal||Journal of business & economic statistics|
|Publication status||Published - Apr 1997|
- Limited-dependent-variable model
- Reservation wage
- Structural estimation
- Willingness to pay