Labor Economics II
Assignment 1
Spring 2006
Due Date: February 2
In the Salop model, individuals search for a job in dierent labor markets, where
each labor market is characterized by a dierent probability of getting a job oer in a
period of search. Once
/* srch1.txt
program to solve simplest continuous time search problem */
closeall:
output file = search.out reset;
/* parameters
rho
c
lam
alpha
*/
are defined as follows:
discount rate
cost of search
rate of arrival of offers
parameter which describes wa
/* solve differential equation for continuous time search with limit T on
search time
agents still live forever. If no job accepted by time T then individual
recieves
b/rho */
closeall;
output file = search-de.out reset;
/* set parameter values */
rho = .
Learning the parameters of the Multinomial Distribution
C. Flinn
January 2006
For simplicity, assume that there are 3 possible wages, and the values of
possible wage oers are known to be wi = i; , i = 1, 2, 3. Then the inferential
problem is to learn the
Labor Economics II
Assignment 4
Spring 2005
Due Date: April 5
Assume that spouses who inhabit the same household each have utility functions
given by
ui (li , K ) = i ln(li ) + (1 i ) ln K, i = 1, 2,
where li is the leisure of spouse i, i is the leisure w
Labor Economics II
Assignment 3
Spring 2006
Due Date: February 28
In this exercise you are asked to estimate a neoclassical labor supply model in which
a large proportion of the population are at a corner solution (i.e., dont participate). To
keep things
Labor Economics II
Assignment 2
Spring 2006
Due Date: February 14
In this exercise you are asked to estimate a structural two-state (employment and
unemployment) search model under two assumptions regarding measurement error in
wages. Given the discussion