Labor Supply and Optimization Frictions: Evidence from the Danish Student Labor Market

Publikation: Working paperForskning

Standard

Labor Supply and Optimization Frictions : Evidence from the Danish Student Labor Market. / Søgaard, Jakob Egholt.

2019.

Publikation: Working paperForskning

Harvard

Søgaard, JE 2019 'Labor Supply and Optimization Frictions: Evidence from the Danish Student Labor Market'. https://doi.org/10.2139/ssrn.3317551

APA

Søgaard, J. E. (2019). Labor Supply and Optimization Frictions: Evidence from the Danish Student Labor Market. SSRN Electronic Journal https://doi.org/10.2139/ssrn.3317551

Vancouver

Søgaard JE. Labor Supply and Optimization Frictions: Evidence from the Danish Student Labor Market. 2019 jan 29. https://doi.org/10.2139/ssrn.3317551

Author

Søgaard, Jakob Egholt. / Labor Supply and Optimization Frictions : Evidence from the Danish Student Labor Market. 2019. (SSRN Electronic Journal).

Bibtex

@techreport{9dfb7fc498684854ad34056407922256,
title = "Labor Supply and Optimization Frictions: Evidence from the Danish Student Labor Market",
abstract = "Using Danish administrative data, I investigate the magnitude and nature of optimization frictions in the labor market of Danish students. Danish students face a unique institutional setting that makes it possible to distinguish between different types of frictions and estimate their effect on individual utility. I find that frictions significantly affect observed labor market outcomes. In particular, the empirical evidence points to inattention as the dominant type of friction. In contrast, my findings appear inconsistent with real adjustment costs, price misperception and gradual learning. Overall, optimization frictions reduce the utility of individuals by approximately 2-3 percent of disposable income.",
keywords = "Faculty of Social Sciences, Optimization frictions, labor supply, bunching, inattention, student labor markets",
author = "S{\o}gaard, {Jakob Egholt}",
year = "2019",
month = jan,
day = "29",
doi = "10.2139/ssrn.3317551",
language = "English",
volume = "01/2019",
series = "SSRN Electronic Journal",
type = "WorkingPaper",

}

RIS

TY - UNPB

T1 - Labor Supply and Optimization Frictions

T2 - Evidence from the Danish Student Labor Market

AU - Søgaard, Jakob Egholt

PY - 2019/1/29

Y1 - 2019/1/29

N2 - Using Danish administrative data, I investigate the magnitude and nature of optimization frictions in the labor market of Danish students. Danish students face a unique institutional setting that makes it possible to distinguish between different types of frictions and estimate their effect on individual utility. I find that frictions significantly affect observed labor market outcomes. In particular, the empirical evidence points to inattention as the dominant type of friction. In contrast, my findings appear inconsistent with real adjustment costs, price misperception and gradual learning. Overall, optimization frictions reduce the utility of individuals by approximately 2-3 percent of disposable income.

AB - Using Danish administrative data, I investigate the magnitude and nature of optimization frictions in the labor market of Danish students. Danish students face a unique institutional setting that makes it possible to distinguish between different types of frictions and estimate their effect on individual utility. I find that frictions significantly affect observed labor market outcomes. In particular, the empirical evidence points to inattention as the dominant type of friction. In contrast, my findings appear inconsistent with real adjustment costs, price misperception and gradual learning. Overall, optimization frictions reduce the utility of individuals by approximately 2-3 percent of disposable income.

KW - Faculty of Social Sciences

KW - Optimization frictions

KW - labor supply

KW - bunching

KW - inattention

KW - student labor markets

UR - http://www.mendeley.com/research/labor-supply-optimization-frictions-evidence-danish-student-labor-market-1

U2 - 10.2139/ssrn.3317551

DO - 10.2139/ssrn.3317551

M3 - Working paper

VL - 01/2019

T3 - SSRN Electronic Journal

BT - Labor Supply and Optimization Frictions

ER -

ID: 242774974