Keller, Godfrey; Roberts, Kevin; Stevens, Margaret - University <Oxford> / Department of Economics - 2007
We construct an equilibrium random matching model of the labour market, withendogenous market participation and a … general matching technology that allows formarket size effects: the job-finding rate for workers and the incentives for … participationchange with the level of unemployment. In comparison to standard modelswith constant returns to scale in matching, agent …