Semi-nonparametric estimation of an equilibrium search model

We specify and estimate an equilibrium job search model with productivity d ifferences across labour market segments. The model allows for two types of unemployment: frictional unemployment due to search frictions and structur al unemployment due to wage floors. Wage floors exist because of high unemp loyment benefits or binding minimum wages. The productivity distribution is estimated semi-nonparametrically along the lines of Gallant-Nychka, using Hermite series approximation. We decompose the total unemployment rate and we exam inc the effects of changes in the minimum wage.