The labor search and matching model plays a growing role in macroeconomic analysis. This paper provides a critical …, selective survey of the literature. Four fundamental questions are explored: how are unemployment, job vacancies, and employment …

Rising wage inequality in the U.S. and Britain (especially in the 1980s) and rising continental European unemployment … large data sets from the U.S., Britain, and western Germany to test the Krugman hypothesis for the 1990s, when unemployment …

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 …

This paper tests whether aggregate matching is consistent with unemployment being mainly due to search frictions or due … to job queues. Using U.K. data and correcting for temporal aggregation bias, estimates of the random matching function … are consistent with previous work in this field, but random matching is formally rejected by the data. The data instead …

This paper provides a simple matching model in which unemployed workers and employers in large firms can be matched … increasing the number of workers embedded in the social networks can increase the unemployment rate and decrease workers welfare …

Reduced-form tests of scale effects in markets with search, run when aggregate matching functions are estimated, may …

-specific unemployment rates in 1997. The required nominal wage reductions range from 8.8 to 12.2% and are the higher the lower the employees …

do not necessary induce stickiness in unemployment dynamics. Our endogenous matching technology shows that the effects of …We provide a matching model where identical workers are embedded in ex-ante identical social networks. Job arrival rate … distribution of unemployment rates across networks. We emphasize that wage dispersion arises endogenously as the consequence of the …

Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle. …