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 …

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 …

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

matching or information revealed by others' behaviours, or to endogenous effects generated by bargaining within marriage. A … in individual effects. As such the correlation in the raw smoking data is consistent with positive assortative matching …

A dynamic labor matching economy is presented, in which the unemployed are either entitled to unemployment insurance …

Matching has become a popular approach to estimate average treatment effects. It is based on the conditional … matching estimators are not robust. We address this problem with the bounding approach proposed by Rosenbaum (2002), where … to undermine the implications of the matching analysis. …

insurance against unemployment caused by labor market frictions and hence increases the incentives for education. We show within … a matching model that reducing the start-up costs for new firms results in higher take-up rates of education. It also …

empirical finding is related to variation in the efficiency of the matching process across occupations. A simple theoretical …