Evaluating Search And Matching Models Using Experimental Data

Jeffrey Smith, Jeremy Lise and Shannon Seitz ()

No 1074, Working Paper from Economics Department, Queen's University

Abstract: This paper introduces an innovative test of search and matching models using the exogenous variation available inexperimental data. We take an off-the-shelf Pissarides matching model and calibrate it to data on thecontrol group from a randomized social experiment. We then simulate a program group from arandomized experiment within the model. As a measure of the performance of the model, we compare the outcomes ofthe program groups from the model and from the randomized experiment. We illustrate our methodology using theCanadian Self-Sufficiency Project (SSP), a social experiment providing a time limited earnings supplement forIncome Assistance recipients who obtain full time employment within a 12 month period. We find two features of themodel are consistent with the experimental results: endogenous search intensity and exogenous jobdestruction. We find mixed evidence in support of the assumption of fixed hours of labor supply. Finally, we finda constant job destruction rate is not consistent with the experimental data in this context.

Keywords: equilibrium search and matching models; policy experiments; Self-Sufficiency Project; welfare; Calibration; social experiments (search for similar items in EconPapers)
JEL-codes: I38 J2 J6 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2006-05
New Economics Papers: this item is included in nep-dge and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1074.pdf First version 2006 (application/pdf)

Related works:
Journal Article: Evaluating search and matching models using experimental data (2015)
Working Paper: Evaluating Search and Matching Models Using Experimental Data (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1074

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