both the vacancy-unemployment ratio and employment. We show that the standard version of the Mortensen-Pissarides matching … the matching model with sunk costs, new job openings react sluggishly to shocks, leading to highly realistic dynamics …

Shimer (2005) showed that a standard search and matching model of the labor market fails to generate fluctuations of … unemployment and vacancies of the magnitude observed in US data in response to shocks to average labor productivity of plausible … response of unemployment and vacancies to a shock to average labor productivity. In light of these properties, cast in terms of …

This paper studies amplification of productivity shocks in labor markets through on-the-job-search. There is incomplete … for on-the-job search. Amplification arises because productivity changes not only affect firms' probability of contacting … labor productivity in the U.S. show that standard deviations for unemployment, vacancies and market tightness (vacancy …

theoretical contribution is combining a job matching model with monopolistic competition in the goods market and individual wage …

develops an equilibrium matching model which can explain these empirical regularities. In this model, the matching process … the labor market search for jobs through formal methods. The split of firms and workers between referrals and formal … search is, however, not necessarily efficient. Congestion externalities in referral search imply that unemployment would be …

In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment …