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 …

possibility of differential productivity across occupations. The model combines moral hazard and matching of physicians and … occupations with pre-matching investments. In equilibrium assortative matching takes place; more able physicians join occupations … less exposed to moral hazard risk, face more powerful performance incentives, and are more productive. Under-consumption of …

A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in …

In the context of the Beckerian theory of marriage, when men and women match on a single-dimensional index that is the …

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

incorporating matching as a way to ensure sub-sample homogeneity. Thus, we match second-generation immigrants to their ethnic Danish … twins on the basis of parental characteristics and informal network quality. There are big differences before matching, but … after matching, second-generation immigrants perform as well or better than their ethnic Dane counterparts do on the labor …

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