Two papers have recently questioned the quantitative consistency of the search and matching models. Shimer (2005) has … argued that a text-book matching model is unable to explain the cyclical variation of unemployment and vacancies in the U …

selling their production and this affects their decisions to create jobs. Due to search-frictins on the product market … their Competitive Search Equilibrium values, the unemployment rate is minimized. Yet, the Competitive Search Equilibrium is …

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 …