analyze the effect of changes in the macro economic variables on the wage contract and the unemployment rate. We find that … private information may increase the responsiveness of the unemployment rate to changes in productivity. The incentive power … of the wage contracts is positively related to high productivity, low unemployment benefits and high search frictions. …

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 …

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

higher post-unemployment wages but not faster matches, so aggregate matching functions are unaffected by scale. …Reduced-form tests of scale effects in markets with search, based on aggregate matching functions, may miss important …

This article develops a model of unemployment fluctuations. The model keeps the architecture of the general …-disequilibrium model of Barro and Grossman (1971) but takes a matching approach to the labor and product markets instead of a … affects unemployment as follows. An increase in aggregate demand leads firms to find more customers. This reduces the idle …