Experimental Tests of Finite Horizon Job Search Models
{'Code': '04050100', 'Directorate': {'Abbreviation': 'SBE', 'LongName': 'Direct For Social, Behav & Economic Scie'}, 'Division': {'Abbreviation': 'SES', 'LongName': 'Divn Of Social and Economic Sciences'}}
{'SignBlockName': 'Daniel H. Newlon', 'PO_EMAI': None, 'PO_PHON': None}
This research involves laboratory experiments to test job search models         and econometric analysis of field experimental data to test parallelism         of laboratory and field search behavior.  In addition, experimental             data will be used to evaluate econometric techniques that have been             developed to cope with the limited information problems associated with         naturally occurring-job markets.                                                                                                                                The tests include direct tests of the reservation wage property using a         new experimental design with precommitment and econometric techniques           that use either limited or full information on reservation wages.               Experiments will also be conducted taking into account more complicated         search environments which will include tests of models with variable            search intensity, perfect and imperfect job recall, and search with             unknown wage offer distributions.  Evaluation of the limited                    information econometric techniques involves application of these                methods to the subset of the laboratory data that corresponds to                variables that are observable in uncontrolled markets.  Econometric             tests of parallelism will use results from field experiments conducted          in the naturally-occurring labor market to provide empirical evidence           about the qualitative similarity of laboratory search behavior and              actual market search behavior.                                                  $$$                                                                             This project is concerned with testing theories about the job                   search behavior of unemployed workers using experimental methods.               A key element in testing these theories is the minimum wage a                   worker is willing to accept in taking an available job.  These                  theories will be tested in terms of this reservation wage                       property by exploiting information on the responses of subjects                 to actual financial offers received.  The research will examine                 behavior in environments corresponding to labor markets in which                individuals have imperfect notions about their job offer                        prospects, or in which they are able to vary the intensity in                   which they search for jobs.                                                                                                                                     Econometric techniques have been developed to analyze labor                     market data in environments where key variables in the worker's                 decision problem are unobservable.  The validity of these methods               will be evaluated by determining whether the inferences generated               from applying these techniques are contradicted by inferences                   made on the basis of the more complete information provided by                  laboratory experiments.  This project is important because the                  results from the laboratory experiments may shed new light on the               factors contributing to unemployment.
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[{'Code': '132000', 'Text': 'Economics'}, {'Code': '914500', 'Text': 'SPECIAL PROGRAMS-RESERVE'}]
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