The essential idea of equilibrium search models of labour market behaviour is that wage policy matters. In contrast, the stylized neoclassical competitive model predicts that firms paying a wage above the competitive equilibrium will disappear; those offering less will attract no workers. The...

SEARCH MODELS AND DURATION DATA By George R. Neumann* Contents 1. Introduction p. 1 2. Duration Distributions p. 3 2.1 Survivor, density, and hazard functions 2.2 Censoring Mechanisms 2.3 Nonparametric estimation 2.4 Parametric estimation 2.5 Sampling Issues 3. Econometric Models for Durations...

This paper applies an equilibrium search to study the transition from schooling to work of U.S. high school graduates. We consider the case where there is heterogeneity in firm productivity and the number of firm types is discrete. For this case the estimation problem is non-standard and the...