A cross-country comparison of labor market frictions

Sammanfattning av Working paper 2002:22

In this paper we de fine and estimate measures of labor market frictions using data on job durations.We compare di fferent estimation methods and di fferent 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 e ects of the minimum wage, unemployment bene fits and search frictions.

Keywords: wages, search frictions, cross-country comparisons, monopsony power, minimum wage, job search, mobility, labor market policy.