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UNEMPLOYMENT BENEFITS AND SEARCH BEHAVIOR AN EMPIRICAL INVESTIGATION

Geert Ridder and Kees Gorter

No 293113, University of Amsterdam, Actuarial Science and Econometrics Archive from University of Amsterdam, Faculty of Economics and Business

Abstract: In this paper we estimate a structural model of the search behaviour of the unemployed. We concentrate on the effect of unemployment benefits on the reservation wage which characterizes the optimal search strategy. We find a larger estimate of the benefit elasticity than that obtained in a comparable study for the United Kingdom. A comparison of the estimation results shows that the difference is due to a smaller arrival rate of job offers which is not accompanied by a lower reservation wage (relative to the wage offer distribution).

Keywords: Labor and Human Capital; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Date: 1986-05
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Persistent link: https://EconPapers.repec.org/RePEc:ags:amstas:293113

DOI: 10.22004/ag.econ.293113

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