Identification in Empirical Search Models When Wages are Measured with Errors

This paper investigates identification in structural search models that allow for the presence of measurement errors in wages. I show that the partial equilibrium search model with measurement error is not fully identified in general. I also specify sufficient conditions for identification of the model. I extend my analysis to the problem of identification of equilibrium search models. I show that this type of models are accepted by similar identification problems. An empirical exercise illustrates the sensitivity of the structural search model to parametric assumptions about the distribution of wages and the distribution of errors in wages