vacancies on the other hand, which is observationally equivalent to a constant returns Cobb-Douglas function commonly used to … model match formation. We use German administrative labor market data to show that the matching function correlation solely … based on idiosyncratic productivity and free entry is very close to the empirical matching function. Consequently, we argue …

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 …

Several authors have proposed staggered wage bargaining as a way to introduce sticky wages into search and matching … a series of estimated shocks from US data into a search and matching model with sticky prices and wages. I compare the … cycle volatility and matching the lack of a long-run relationship between vacancy creation and inflation. With regard to …

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are … quit decisions. This approach obviates the need for a matching function. On this theoretical basis, we argue that the … matching function is vulnerable to the Lucas critique. Our calibrated model for the U.S. economy can account for important …

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 …

This paper examines the labour market matching process by distinguishing its two component stages: the contact stage … account for important empirical regularities that the conventional matching model cannot. …