Specification and extimation of a burdett-mortensen type equilibrium search model is considered. The estimation problem is nonstandard. An estimation strategy asymptotically equivalent to maximum likelihood is proposed and applied.

In the simple framework of a static model for equilibrium wages and labour supplies, we show that the incidence of income tax on equilibrium wages can be measured independently from the individual labour supply elasticity. This extends recent work by Blundell, Duncan and Meghir (1998) and Eissa...