EconPapers    
Economics at your fingertips  
 

Accounting for Endogeneity in Matching Function Estimation

Daniel Borowczyk-Martins (), Gregory Jolivet and Fabien Postel-Vinay ()

Sciences Po publications from Sciences Po

Abstract: We show that equilibrium matching models imply that standard estimates of the matching function elasticities are exposed to an endogeneity bias, which arises from the search behavior of agents on either side of the market. We offer an estimation method which, under certain structural assumptions about the process driving shocks to matching efficiency, is immune from that bias. Application of our method to the estimation of a basic version of the matching function using aggregate U.S. data from the Job Openings and Labor Turnover Survey (JOLTS) suggests that the bias can be quantitatively important.

Keywords: Matching Function Estimation; Unemployment; Vacancies; Job Finding (search for similar items in EconPapers)
JEL-codes: J63 J64 E24 (search for similar items in EconPapers)
Date: 2013-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37) Track citations by RSS feed

Published in Review of Economic Dynamics, 2013, vol. 16, pp.440-451

Downloads: (external link)
https://spire.sciencespo.fr/hdl:/2441/4l136f59vb8m ... geneity-v-auteur.pdf (application/pdf)

Related works:
Journal Article: Accounting For Endogeneity in Matching Function Estimation (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spo:wpmain:info:hdl:2441/4l136f59vb8mcalu5p6p5li007

Access Statistics for this paper

More papers in Sciences Po publications from Sciences Po Contact information at EDIRC.
Bibliographic data for series maintained by Spire @ Sciences Po Library ().

 
Page updated 2019-04-26
Handle: RePEc:spo:wpmain:info:hdl:2441/4l136f59vb8mcalu5p6p5li007