Rogerson (1988).

uninsurable wage risk, insurable wage risk, and measurement error.

Finally, we plan to use the analytical characterization of the model's reservation wage policies to outline a feasible method to identify and estimate structural models of joint search and location decisions.

We analyze a model in which agents endogenously decide whether to locate close to other members of the extended family, as opposed to different cities or states. The agents' decisions are affected by several factors including the nature of the shock process affecting incomes, initial wealth,...