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Title: Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation
Resulting in 1 citation.
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Paserman, Marco Daniele |
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Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation Economic Journal 118,531 (August 2008): 1418-1452. Also: http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0297.2008.02175.x/abstract Cohort(s): NLSY79 Publisher: Royal Economic Society (RES) Keyword(s): Armed Forces Qualifications Test (AFQT); Employment; Human Capital; Intergenerational Patterns/Transmission; Job Search; Mobility; Modeling; Unemployment; Unemployment Duration; Wage Levels; Wages; Work Histories Permission to reprint the abstract has not been received from the publisher. This article estimates the degree of hyperbolic discounting in a job search model quantitatively, using data on unemployment spells and accepted wages from the NLSY. The results point to a substantial degree of hyperbolic discounting for low and medium wage workers. The structural estimates are then used to evaluate alternative policy interventions aimed at reducing unemployment. The estimated effects of a given policy can vary by up to 40%, depending on the assumed type of time discounting. Some interventions may raise the long-run utility of hyperbolic workers, and at the same time reduce unemployment duration and lower government expenditures. |
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Bibliography Citation
Paserman, Marco Daniele. "Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation." Economic Journal 118,531 (August 2008): 1418-1452.
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