A Search Matching Model with Heterogeneous Jobs and Workers, and Endogenous Labour Market Participation

We construct a search matching model, which incorporates endogenous labour market participation into the segmented labour market by combining the models of Albrecht and Vroman (2002) and Garibaldi and Wasmer (2005) to investigate how to raise the labour force participation rate in the segmented labour market. The quantitative implications predicts that the decrease of the value of home production, such as the rapid spread of autonomous robotic vacuum cleaners and cheap housekeeping services, leads an increase in employment