An empirical equilibrium job search model with search on the job and heterogeneous workers and firms

In this article we present and estimate a synthesis of previous equilibrium search models, allowing for continuous distributions of workers' opportuni ty costs of employment as well as firms' productivities. The model allows f or on-the-job search, and we assume that job offer arrival rates for worker s are independent of their labor-market state. We derive the theoretical im plications of these assumptions, we provide simulations, and we develop a s emiparametric estimation procedure that we apply to a dataset of individual labor-market histories.