Estimating On-the-job Search as an Intensive Margin
1 : Sciences Po Paris - Institut d'études politiques de Paris
(IEP Paris)
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Website
Fondation Nationale des Sciences Politiques [FNSP], PRES Sorbonne Paris Cité, Institut d'Études Politiques [IEP] - Paris
27 rue Saint-Guillaume - 75337 Paris Cedex 07 -
France
2 : Aix-Marseille School of Economics
(AMSE)
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Website
* : Corresponding author
Ecole Centrale Marseille (ECM), Ecole des Hautes Etudes en Sciences Sociales (EHESS), Centre national de la recherche scientifique (CNRS)
GREQAM, Centre de la Charité, 2 rue de la Charité, 13236 Marseille Cedex 02 -
France
Job-to-job transition is a major source of wage growth over a lifetime. This
paper individually estimates how job search efforts respond to expected gains
from mobility, accounting from observed characteristics. Both gains and efforts
are unobserved, calling for a structural approach. I build a random search model
with endogenous search effort and individual heterogeneity. Workers have forward-
looking expectations on job opportunities and household characteristics. The opti-
mal search effort function is jointly estimated with the distribution of job offers from
panel data. Results show that individuals search slightly less when their expected
gain from searching is lower.
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