Reduced-form tests of scale effects in markets with search, run when aggregate matching functions are estimated, may … higher realized wages and not more matches, because the scale effects on matches are offset by the response of reservation … wages. …

We analyze a model of directed search in which unemployed job seekers observe all posted wages. We allow for the … wages paid, and equilibrium may be inefficient. We show that our results also hold in a steady-state version of the model. …

A large part of the literature on frictional matching in the labor market assumes bilateral meetings between workers … arises endogenously and workers spread their applications over the different types of contracts. Estimation of the model on …

We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex …. They reside in a city and commuting to the job center involves both pecuniary and time costs. Thus, workers with high wages …

equilibrium, blacks end up with both higher unemployment rates and lower wages than whites. Furthermore, it takes more time for …

Do firms reduce employment when their insiders (established, incumbent employees) claim higher wages? The conventional … employees (entrants) receive their reservation wages. The reason given is that an increase in insider wages gives rise to a … counterveiling fall in reservation wages, leaving the present value of wage costs unchanged. Our analysis contradicts this …