Abstract
This paper quantifies the importance of nonwage job characteristics to workers by estimating a structural on-the-job search model. The model generalizes the standard search framework by allowing workers to search for jobs based on both wages and job-specific nonwage utility flows. Within the structure of the search model, data on accepted wages and wage changes at job transitions identify the importance of nonwage utility through revealed preference. The estimates reveal that utility from nonwage job characteristics plays an important role in determining job mobility, the value of jobs to workers, and the gains from job search.
- Received September 2011.
- Accepted May 2013.
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Jump to section
- Article
- Abstract
- I. Introduction
- II. The Search Model with Utility from Nonwage Job Characteristics
- III. Data
- IV. Estimation
- V. Empirical Results
- VI. Concluding Remarks
- Appendix 1 Derivation of Reservation Utility
- Appendix 2 Moments and Identifi cation of Covariance Matrix of Unobserved Heterogeneity
- Footnotes
- References
- Figures & Data
- Info & Metrics
- References