Working Paper: NBER ID: w12166
Authors: Gadi Barlevy; H.N. Nagaraja
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: search models; labor market; worker productivity; job offers
JEL Codes: J64; C14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Search models can be identified even with left-censored employment histories (C24) | Wage on the first job does not have to be a random draw from the distribution of wages available to workers (J31) |
| Average wage gains of job changers vary with past job mobility (J62) | Identification of search models (C52) |
| Allowing for heterogeneity in reservation wages (J79) | Empirical estimates of the rate at which workers receive job offers (J63) |
| Accommodating heterogeneity in reservation wages (J79) | Estimated rate of job offers for employed workers compared to a model assuming uniform reservation prices (J29) |