A cross-country comparison of labor market frictions

Geert Ridder () and Gerard van den Berg

No 2002:22, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: In this paper we define and estimate measures of labor market frictions using data on job durations. We compare different estimation methods and different types of data. We propose and apply an unconditional inference method that can be applied to aggregate duration data. It does not require wage data, it is invariant to the way in which wages are determined, and it allows workers to care about other job characteristics. The empirical analysis focuses on France, but we perform separate analyses for the USA, the UK, Germany and the Netherlands. We quantify the monopsony power due to search frictions and we examine the policy effects of the minimum wage, unemployment benefits and search frictions.

Keywords: Wages; search frictions; cross-country comparisons; monopsony power; minimum wage; job search; mobility; labour market policy (search for similar items in EconPapers)
JEL-codes: J31 J42 J63 J68 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2002-12-04
New Economics Papers: this item is included in nep-cwa and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in Journal of the European Economic Association, 2003, pages 224-244.

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