Labor market policies in an equilibrium matching model with heterogeneous agents and on-the-job search LABOR MARKET POLICIES IN AN EQUILIBRIUM MATCHING MODEL WITH HETEROGENOUS AGENTS AND ON-THE-JOB SEARCH Title and Department Date LABOR MARKET POLICIES IN AN EQUILIBRIUM MATCHING MODEL WITH HETEROGENOUS AGENTS AND ON-THE-JOB SEARCH
Olena Stavrunova, Olena Stavrunova, Olena Stavrunova, Kung-Sik Chan, Beth Ingram, George Neumann, Elena Pastorino
2007
unpublished
Recommended Citation Stavrunova, Olena. "Labor market policies in an equilibrium matching model with heterogeneous agents and on-the-job search." PhD (Doctor of Philosophy) thesis, University of Iowa, 2007. ABSTRACT This dissertation quantitatively evaluates selected labor market policies in a search-matching model with skill heterogeneity where high-skilled workers can take temporary jobs with skill requirements below their skill levels. The joint posterior distribution of structural
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... of the theoretical model is obtained conditional on the data on labor markets histories of the NLSY79 respondents. The information on AFQT scores of individuals and the skill requirements of occupations is utilized to identify the skill levels of workers and complexity levels of jobs in the job-worker matches realized in the data. The model and the data are used to simulate the posterior distributions of impacts of labor market policies on the endogenous variables of interest to a policy-maker, including unemployment rates, durations and wages of low-and high-skilled workers. In particular, the effects of the following policies are analyzed: increase in proportion of high-skilled workers, subsidies for employing or hiring high-and low-skilled workers and increase in unemployment income. Abstract Approved: Thesis Supervisor To my family. ii ACKNOWLEDGEMENTS I would like to thank my committee members Beth Ingram, Kung-Sik Chan, George Neumann and Elena Pastorino for their helpful comments and suggestions. I am especially grateful to my advisor John Geweke for his guidance, encouragement and support. I thank the Graduate School of the University of Iowa for financial support, and Beth Ingram and George Neumann for providing access to their data and research files. iii ABSTRACT This dissertation quantitatively evaluates selected labor market policies in a search-matching model with skill heterogeneity where high-skilled workers can take temporary jobs with skill requirements below their skill levels. The joint posterior distribution of structural parameters of the theoretical model is obtained conditional on the data on labor markets histories of the NLSY79 respondents. The information on AFQT scores of individuals and the skill requirements of occupations is utilized to identify the skill levels of workers and complexity levels of jobs in the job-worker matches realized in the data. The model and the data are used to simulate the posterior distributions of impacts of labor market policies on the endogenous variables of interest to a policy-maker, including unemployment rates, durations and wages of low-and high-skilled workers. In particular, the effects of the following policies are analyzed: increase in proportion of high-skilled workers, subsidies for employing or hiring high-and low-skilled workers and increase in unemployment income.
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