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Publication - Professor Gerard Van den Berg

    Semi-nonparametric estimation of an equilibrium search model


    Koning, P, Berg, GJVD & Ridder, G, 2000, ‘Semi-nonparametric estimation of an equilibrium search model’. Oxford Bulletin of Economics and Statistics, vol 62., pp. 327-349


    We specify and estimate an equilibrium job search model with productivity differences across labour market segments. The model allows for two types of unemployment: frictional unemployment due to search frictions and structural unemployment due to wage floors. Wage floors exist because of high unemployment benefits or binding minimum wages. The productivity distribution is estimated semi-nonparametrically along the lines of Gallant-Nychka, using Hermite series approximation. We decompose the total unemployment rate and we examine the effects of changes in the minimum wage.

    Full details in the University publications repository