. In particular, I show that once markups are allowed to respond to trade liberalization, unemployment and residual wage …

provides a valid approximation of observed wages and matching patterns for a large part of the data. For low-type workers … low-type workers have become increasingly sorted into low-type firms over time, especially out of unemployment. This …

search and matching model of the labor market. Removing the biases could substantially increase wages and expected lifetime …

This paper shows that the matching function and the Beveridge curve in the United States exhibit strong nonlinearities … over the business cycle. These patterns can be replicated by enhancing a search and matching model with idiosyncratic … density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our …

A key question in labor market research is how the unemployment insurance system affects unemployment rates and labor … 76% of declining unemployment after the reform, a fact unexplained by existing research focusing on job finding rates … causally link our empirical findings to the reduction in longterm unemployment benefits using a heterogeneous-agent labor …

According to search-matching theory, the Beveridge curve slopes downward because vacancies are filled more quickly when … unemployment is high. Using monthly panel data for local labour markets in Sweden we find no (or only weak) evidence that high … unemployment makes it easier to fill vacancies. Instead, there are few vacancies when unemployment is high because there is a low …