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 |
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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