Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/335957 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 18309
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper applies some of the key insights of dynamic discrete choice models to continuous-time job search models. Our framework incorporates preference shocks into search models, resulting in a tight connection between value functions and conditional choice probabilities. In this environment, we establish constructive identification of the model parameters, including the wage offer distributions off- and on-the-job. Our framework makes it possible to estimate nonstationary search models in a simple and tractable way, without having to solve any differential equations. We apply our method using Hungarian administrative data. Longer unemployment durations are associated with lower offer arrival rates, resulting in accepted wages falling over time. Counterfactual simulations indicate that increasing unemployment benefits by 90 days results in a 14-day increase in expected unemployment duration.
Subjects: 
job search
identification
dynamic discrete choice
JEL: 
J64
C31
C41
J31
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.