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 …

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 …

others suffer long periods of costly adjustment, typically high and persistent unemployment and temporary output losses. We … unemployment duration spells, relatively large wage penalties when changing jobs and higher likelihood of leaving activity for … and persistent unemployment compared to Estonia during the period of EU enlargement. Traditional labour market …

This Paper considers a matching model of heterogeneous workers and jobs, which includes on-the-job search. High … for the unemployment rates of high and low-educated workers, for the share of mismatched workers and wage inequality both …

of EPL varying among workers of different skills on the level and composition of unemployment, job flows, productivity …

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 …

little employment protection and low unemployment benefits, while the European model (generous benefits and higher duration …

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

. We sketch the theoretical framework of matching estimators as a substitute for randomization in labor market programs …-in-differences matching estimator of treatment effects. Treatment and control groups are matched over individual observable characteristics …