Identification of Search Models with Initial Condition Problems

45 Pages Posted: 11 Apr 2006

See all articles by Gadi Barlevy

Gadi Barlevy

Federal Reserve Bank of Chicago; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

H.N. Nagaraja

Ohio State University

Multiple version iconThere are 2 versions of this paper

Date Written: April 2006

Abstract

This paper extends previous work on the identification of search models in which observed worker productivity is imperfectly observed. In particular, it establishes that these models remain identified even when employment histories are left-censored (i.e. we do not get to follow workers from their initial job out of unemployment), as well as when workers set different reservation wages from one another. We further show that allowing for heterogeneity in reservation can affect the empirical estimates we obtain, specifically estimates of the rate at which workers receive job offers.

Keywords: record statistics, on-the-job search, job mobility, reservation wages

JEL Classification: J64, C14

Suggested Citation

Barlevy, Gadi and Nagaraja, H.N., Identification of Search Models with Initial Condition Problems (April 2006). IZA Discussion Paper No. 2061, FRB of Chicago Working Paper No. 2006-03, Available at SSRN: https://ssrn.com/abstract=895665 or http://dx.doi.org/10.2139/ssrn.895665

Gadi Barlevy (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

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

H.N. Nagaraja

Ohio State University ( email )

2100 Neil Avenue
Columbus, OH OH 43210
United States

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