equilibrium model with heterogenous labor markets. In this model three different types of unemployment arise: search, rest and …

business cycle model with search and matching frictions. We extend the canonical model by including capital … types. We first find that, the model does a good job at matching the cyclical properties of sectoral employment and the wage …

employees. This paper develops a matching model that can explain the link between inter-industry wage differentials and use of …-workers, allowing firms to pay lower efficiency wages. On the other hand, informal search provides fewer job and applicant contacts than … formal methods (e.g., newspaper ads). In equilibrium, the matching process generates segmentation in the labor market because …

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 …