vacancies in the local labor market, and what impact it has on employment. A greater availability of unemployed workers should … estimation, show economically significant effects of shocks to the number of vacancies on employment dynamics, while shocks to … the number of unemployed are not very important. Matching frictions are more important for employment during booms than …

employment primarily along a lowskill (or low 'match-quality') dimension. In such a case, job creation would serve to lower …