Female labour supply and on-the-job search: an empirical model estimated using complementary data sets

We specify an empirical model of labour supply that is consistent with on the job search, which is identified and estimated by combining two data sets: The UK Family Expenditure Survey, which contains information on income and expenditure and the UK Labour Force Survey, which has data on hours and job search behaviour. We provide statistical evidence on the compatibility of the two samples for the purpose of estimating a labour supply equation. We find that on the job search has a direct negative effect on hours and we establish a strong positive effect of the wage on hours.