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 …

We provide evidence on the match between firms, managers and incentives using a new survey designed for this purpose … implicit incentives they face and on the firms they work for. We model a market for managerial talent where both firms and … choice of managerial compensation schemes and the manager-firm matching are all endogenous. The model yields predictions on …

This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search …

examine the theory as they include new positive and negative shocks to the size of large firms. Executive compensation at the …

relative to the first-best. Affirmative action policies can restore diversity within colleges but also affect incentives to …

finding, we describe a model of multi-trait matching and inheritance, in which individuals’ attractiveness in the marriage …

regions, we apply a flexible propensity score matching approach that controls for selection on observables as well as on time …

diminishing returns to the number of workers. We examine the sorting of factors to sectors and the matching of factors within …

societies. When combined with financial incentives to hire unemployed or young jobseekers as replacement, they seem to be …