search decisions by the unemployed – the micro effect – we are guided by equilibrium labor market theory and focus on …

-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 …

This paper explains the divergent behavior of European and US unemployment rates using a job market matching model of … robust explanation for the European unemployment puzzle in the context of a matching model with both endogenous job creation …

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 …

We build a general equilibrium model that features uninsurable idiosyncratic shocks, search frictions and an operative … kinds of aggregate shocks for the cyclical behavior of labor market aggregates and flows: shocks to search frictions (the …

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

We develop a simple model featuring search frictions and a nondegenerate labor supply decision along the extensive …