We propose a simple test of hyperbolic versus exponential preferences in a job search model. More impatient workers search less intensively but also accept lower wages. If agents have hyperbolic preferences, the search effect dominates, so increases in impatience lead to lower exit rates from...

How does impatience affect job search? More impatient workers search less intensively and set a lower reservation wage. The effect on the exit rate from unemployment is unclear. In this paper we show that, if agents have exponential time preferences, the reservation wage effect dominates for...

How does impatience affect job search? More impatient workers search less intensively and set a lower reservation wage. The effect on the exit rate from unemployment is unclear. In this paper we show that, if agents have exponential time preferences, the reservation wage effect dominates for...