Citation

Discussion Paper Details

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Title: Measuring Labour Market Frictions: A Cross-Country Comparison

Author(s): Gerard van den Berg and Geert Ridder

Publication Date: July 2003

Keyword(s): cross-country comparisons, job search, labour market policy, minimum wage, mobility, monopsony power, search frictions and wages

Programme Area(s): Labour Economics

Abstract: In this Paper we define and estimate measures of labour market frictions using data on job durations. We compare different estimation methods and different types of data. We propose and apply an unconditional inference method that can be applied to aggregate duration data. It does not require wage data, it is invariant to the way in which wages are determined, and it allows workers to care about other job characteristics. The empirical analysis focuses on France, but we perform separate analyses for the USA, the UK, Germany and the Netherlands. We quantify the monopsony power due to search frictions and we examine the policy effects of the minimum wage, unemployment benefits and search frictions.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3978

Bibliographic Reference

Berg, G and Ridder, G. 2003. 'Measuring Labour Market Frictions: A Cross-Country Comparison'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3978