In this paper we present an empirical structural job search model with endogenously determined search intensity. The model describes both the behaviour of unemployed job seekers and on-the-job search. We use data on various indicators for the intensity of search to study the influence of the...

When applying maximum likelihood estimation in jointly estimating a labour supply function and a wage equation, it may be practically impossible, both analytically and numerically, to calculate the required response probabilities, especially if the model is non-linear. As an alternative, we...

We consider a utility-consistent static labor supply model with flexible preferences and a nonlinear and possibly non-convex budget set. Stochastic error terms are introduced to represent optimization and reporting errors, stochastic preferences, and heterogeneity in wages. Coherency conditions...