Finally, we plan to use the analytical characterization of the model's reservation wage policies to outline a feasible method to identify and estimate structural models of joint search and location decisions.

uninsurable wage risk, insurable wage risk, and measurement error.

Rogerson (1988).

We combine two setups: Bewley-Huggett-Aiyagari and Mortensen-Pissarides. Wages are given by wage bargaining, and wages will depend positively on wealth since rich workers have a better outside option. We also study the model with aggregate risk.