This paper develops a matching model of the labour market under wage rigidity when hiring decisions are irreversible … may have increased unemployment, and shows that this is likely to occur if technological change is associated with an …

This paper offers an alternative theory for the increase in unemployment and wage inequality experienced in the United … change increases skilled wages, reduces unskilled wages and increases the unemployment rate of both skilled and unskilled …

A new methodology is described which tests between various equilibrium theories of unemployment using matching data … identify a matching process using data which is recorded monthly, and also shows how to identify different unemployment … interpretation of the matching data has important implications for government policy on long term unemployment and optimal UI. It …

mandated unemployment insurance (UI) and employment protection (EP). To illuminate the forces in these models, we study how UI … who suffer involuntary layoffs. Matching and search-island models have labour market frictions and incomplete markets. The … higher layoff taxes suppress frictional unemployment in less turbulent times, prevails in the models with labour market …

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 …

and by the need to reallocate workers across productive activities. The duration of unemployment and jobs and wage … policies on wages and unemployment. …

underlying theory is the search and matching model, with workers and firms engaging in costly search leading to random matching …. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows … from it, generated by matching. …

We develop a general equilibrium analysis of the impact of active labour market policy on unemployment, wages and the … employed have little exposure to unemployment and if the demand for unskilled labour is inelastic, there may be political … support for policies which actually raise the equilibrium level of total unemployment. …