matching between employers and employees based on their unobserved characteristics. This paper enables this line of research …) with search frictions can be identified using only matched employer-employee data on wages and labor market transitions. In … particular, these data are sufficient to assess whether matching between workers and firms is assortative, whether sorting is …

duration. We examine this hypothesis by setting up a job search model and calibrating it to the U.S. data. The results indicate …

Shimer (2005) and Hall (2005) have documented the failure of standard labor market search models to match business … explanation is consistent with the data. The main insight is that the relevant wage data for the search model are not aggregate …

-Mortensen-Pissarides structure: firms enter by posting vacancies and match with workers bilaterally, with match probabilities given by an aggregate … matching function. Wages are determined through Nash bargaining. We also consider aggregate productivity shocks, and a complete …

effects of frictions on steady state employment relative to the simplest matching model, and two common extensions. We also …