Structural estimation of search equilibrium models with wage posting [Elektronische Ressource] / by Andrey Launov

Structural Estimation of SearchEquilibrium Models with Wage PostingbyAndrey LaunovSubmitted to the Department of Economicsin partial fulflllment of the requirements for the degree ofDoctor oeconomiae publicae (Dr. oec. publ.)at theLudwig Maximilians University, Munich2005Thesis Supervisor: Prof. Stephan Klasen, Ph.D.Thesis Co-Supervisor: Prof. Dr. Joachim WinterFinal Committee Consultation: January 27, 2006AcknowledgementsI would like to thank all my classmates and colleagues at the Institute for AdvancedStudies (Vienna), University of Munich and University of G˜ottingen for their numer-ous comments and suggestions that helped improving this work considerably. I’mparticularly indebted to Andrea Weber, Joachim Wolfi and Christian Holzner whosecontribution to this research is di–cult to overestimate.MyveryspecialthanksaretoStephanKlasenforhisexcellentsupervision,hispatienceand permanent support and encouragement.ContentsPreface i1 The Model With Continuous Productivity Dispersion 11.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Main Theoretical Results . . . . . . . . . . . . . . . . . . . . . . . . . . 41.3 The Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61.4 Estimation Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . 101.4.1 The Likelihood Function . . . . . . . . . . . . . . . . . . . . . . 111.4.2 The Problem of Top-Coded Wages . . . . . . . . . . . . . . . .