This paper considers a dynamic matching model with imperfectly observable worker effort as in Shapiro and Stiglitz … (1994). In our economy the no-shirking condition endogenously imposes real wage rigidity on the matching market. This …

with endogenous job creation and destruction. The model features heterogeneity of the productivity of firms, across which … workers search, as well as heterogeneity of jobs within firms. On-the-job search promises to resolve the difficulty of the … standard search and matching model in explaining the joint behavior of vacancies, unemployment and labor productivity (see Hall …

class of self-referential linear stochastic models. We introduce three types of heterogeneity related to the way agents … required under aggregation. This suggests that heterogeneity may affect the local stability of the learning scheme but that in …

shocks. We construct a New Keynesian business cycle model with matching frictions of the labor market, where sluggish …