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...

Generally, structural job search models are taken to be stationary. In this paper, models are examined in which every exogenous variable can cause nonstationarity, for instance, because its value is dependent on unemployment duration. A general differential equation that describes the evolution...

We investigate the effect of counselling and monitoring on the individual employment transition rate. We theoretically analyse these policies in a job search model with two search channels and endogenous search effort. In the empirical analysis we use unique administrative and survey data...

Major events in the life of an elderly individual, such as retirement, a significant decrease in income, death of the spouse, disability, and a move to a nursing home, may affect the mental health status of the individual. For example, the individual may enter a prolonged depression. We...

It is often argued that a mandatory minimum wage is binding only if the wage density displays a spike at it. In this Paper we analyse a model with search frictions and heterogeneous production technologies, in which imposition of a minimum wage affects wages even though, after imposition, the...

In markets with imperfect information and heterogeneity, the information technology affects the rate at which agents meet, which in turn affects the distribution of production technologies across firms. We show that in models for such markets there are typically multiple equilibria because...

This Paper analyses the effects of macroeconomic conditions throughout life on the individual mortality rate. We estimate flexible duration models where the individual’s mortality rate depends on current conditions, conditions earlier in life (notably during childhood), calendar time, age,...

This paper considers price determination by monopolistic sellers who know the distribution of valuations among the potential buyers. We derive a novel condition under which the optimal price set by the monopolist is unique. In many settings, this condition is easy to interpret, and it is valid...

In the past decades several features of US unemployment dynamics have been investigated empirically. The original focus of research was on the duration of unemployment. In later studies the cyclicality of incidence and duration, compositional effects and duration dependence of the exit rate out...

In this Paper we simultaneously analyse transitions from unemployment to employment and to non-participation. We estimate a dependent competing risks model with non-parametric specifications of the destination-specific duration dependence and unobserved heterogeneity terms, allowing for mutual...