JOB SEARCH AND COMMUTING TIME

We structurally analyze a job-search model for unemployed individuals that allows jobs to have different wage/commuting-time combinations. T he structural parameter of interest is the degree of willingness to pa y for commuting time. We use a unique dataset containing responses by unemployed individuals on the optimal search strategy to estimate this parameter without the need to rely on functional-form assumptions. We address specification errors in the model and measurement errors in t he data. The results identify types of individuals who have a high dis utility of commuting time.