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Title:Measuring Labor Market Frictions: A Cross-Country Comparison PDF Logo
Authors:Ridder, Geert
van den Berg, Gerard J.
Issue Date:2003
Series/Report no.:IZA Discussion paper series 814
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.
Subjects:wages
search frictions
cross-country comparisons
monopsony power
minimum wage
job search
mobility
labor market policy
JEL:C4
C5
J3
J6
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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