Employed and unemployed search: The marginal willingness to pay for attributes in Lithuania, the US and the Netherlands

Abstract

This paper introduces a method for estimating workers' marginal willingness to pay for job attributes employing data on job search activity. Worker's willingness to pay to avoid a temporary contract, which increases the risk of becoming unemployed, is derived for Lithuania. The empirical relevance of this method is further shown re-interpreting studies that examine search behaviour in the U.S. and the Netherlands. We provide estimates of workers' willingness to pay for a wide range of job attributes including the risk of becoming unemployed and promotion prospects. Further, we discuss and apply a method for estimating unemployed individuals' willingness to pay for recall opportunities and the residual entitlement period --