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 …

underlying theory is the search and matching model, with workers and firms engaging in costly search leading to random matching …. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows … from it, generated by matching. …

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 …

finds equivocal effects on other aggregate outcomes, such as employment and unemployment. Given weaknesses in the …