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. The structural parameter of interest is the willingness to pay for commuting time. We use a unique dataset containing subjective responses on the optimal search strategy by unemployed individuals in order to estimate this structural parameter without the need to rely on strong functional form assumptions. We pay special attention to specification errors in the model and to measurement errors in the data. The estimation results identify certain types of individuals who have a very low willingness to pay for (i.e. a very high disutility of) commuting time.structural estimation; job search model; commuting time; reservation wage; willingness to pay