TY - JOUR
T1 - Structural and frictional unemployment in an equilibrium search model with heterogeneous agents
AU - Koning, Pierre
AU - Ridder, Geert
AU - Van Den Berg, Gerard J.
PY - 1995/12
Y1 - 1995/12
N2 - We specify and estimate an equilibrium search model with between‐market heterogeneity in the productivity levels. The model allows for two types of unemployment: unemployment due to search frictions and unemployment due to wage floors. Wage floors may exist, because of large unemployment benefits or a binding (mandatory) minimum wage. Using data on labour market histories for a sample of Dutch workers, we decompose the total unemployment rate in a structural and frictional unemployment rate. We also discuss the effect of changes in the minimum wage.
AB - We specify and estimate an equilibrium search model with between‐market heterogeneity in the productivity levels. The model allows for two types of unemployment: unemployment due to search frictions and unemployment due to wage floors. Wage floors may exist, because of large unemployment benefits or a binding (mandatory) minimum wage. Using data on labour market histories for a sample of Dutch workers, we decompose the total unemployment rate in a structural and frictional unemployment rate. We also discuss the effect of changes in the minimum wage.
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U2 - 10.1002/jae.3950100508
DO - 10.1002/jae.3950100508
M3 - Article
AN - SCOPUS:84983867383
SN - 0883-7252
VL - 10
SP - S133-S151
JO - Journal of Applied Econometrics
JF - Journal of Applied Econometrics
IS - 1 S
ER -
