Improving Estimation of Labor Market Disequilibrium Through Inclusion of Shortage Indicators
Published Jan 9, 2017
While economic studies often assume that labor markets are in equilibrium, there may be specialized labor markets likely in disequilibrium. We develop a new methodology to improve the estimation of a disequilibrium model that incorporates a survey-based shortage indicator into the model and estimation strategy. We demonstrate the gains in information provided by the methodology. We apply the model to the labor market of anesthesiologists, the outcomes of which would be of independent interest. We find improved accuracy in the estimation as well as useful information revealed by the expanded model.
Topics
Document Details
- Copyright: RAND Corporation
- Availability: Web-Only
- Year: 2017
- Pages: 28
- DOI: https://doi.org/10.7249/WR1175
- Document Number: WR-1175
Citation
RAND Style Manual
Chicago Manual of Style
Baird, Matthew D., Lindsay Daugherty, and Krishna B. Kumar, Improving Estimation of Labor Market Disequilibrium Through Inclusion of Shortage Indicators, RAND Corporation, WR-1175, 2017. As of September 12, 2024: https://www.rand.org/pubs/working_papers/WR1175.html
Baird, Matthew D., Lindsay Daugherty, and Krishna B. Kumar, Improving Estimation of Labor Market Disequilibrium Through Inclusion of Shortage Indicators. Santa Monica, CA: RAND Corporation, 2017. https://www.rand.org/pubs/working_papers/WR1175.html.
This research was conducted by RAND Labor & Population.
This publication is part of the RAND working paper series. RAND working papers are intended to share researchers' latest findings and to solicit informal peer review. They have been approved for circulation by RAND but may not have been formally edited or peer reviewed.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.